Private Equity and Investment in Retail in New York Boost M&As

According to PwC’s Q3 2012 report, retail and consumer M&A in New York were buoyed by spin-off businesses, private equity, cross-border activity, investment in retail and e-commerce growth during the third quarter.

During the period, 32 deals were made in the retail and consumer sectors. These were worth more than $50 million. Meanwhile, six “mega” deals also took place during the third quarter with a collective value of more than $13.9 billion. Last year, the same period had 60% less growth in the retail sector, with only four $4.3 billion mega deals.

PwC’s Leanna Sardiga said:

“Third quarter M&A activity advanced at a brisk pace with significant increases in total deal volume and value from a year ago. With improving consumer sentiment, retail and consumer companies continue to use acquisitions as a vehicle for growth and for adapting to new consumer trends. A strong interest among private equity investors for retail combined with international and e-commerce related acquisitions for R&C corporate buyers are expected to drive the positive outlook for the retail and consumer sector.”

She added, “Deal activity in the consumer space was partially driven by large CPG companies selling non-core operations and brands, and we expect the trend to continue over the next 12 months as CPG companies look to sell underperforming assets and reinvest in higher margin or growth products and markets. Private equity will continue to focus on the restaurant industry and be active in the subsector as they see opportunities to improve operating efficiencies during the economic downturn and position for growth.’’