Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Consumer Retail Industry Sector

By Joe Sands | Mar 19, 2019

The report below gives a good overview of the first quarter M&A activity in the Consumer Retail Industry Sector. M&A activity for North American based target companies in the Consumer and Retail sector for Q4 2018 included 224 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in October when Caleres, Inc. acquired Vionic Group LLC, a portfolio company of Alpine Investors, for US$360 million in cash, subject to certain adjustments. The acquisition would expand Caleres’ brand portfolio in the footwear category. Vionic Group is located in San Rafael, California, and offers product development, research, marketing and distribution of footwear.

Industry Indicators

  • Total US consumer spending, an indicator of nonstore retail sales rose 1.8%, primarily from services expenditures, in November 2018 compared to the same month in 2017.
  • The average US retail price for diesel and regular gas, which influences discretionary consumer spending on internet and catalog items, fell 3.2% and 12.7%, respectively, in the week ending February 11, 2019, compared to the same week in 2018.
  • US personal income, which drives consumer nonstore retail spending, rose 4.2% in November 2018 compared to the same month in 2017.
  • US retail sales for nonstore retailers, a measure of demand, increased 9.6% in 2018 compared to 2017.

Posted by Joe Sands.

Read the Entire Consumer Retail 1st Quarter Newsletter Here

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