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Private Equity-Backed Buyout Deals in the Consumer & Retail Industry, 2006-2013 YTD - July 2013

by Kapil Joshi

  • 26 Jul 2013
  • PE

Preqin’s Buyout Deals Analyst shows that there have been 186 private equity-backed buyout deals in the consumer & retail industry announced globally in 2013 YTD, with an aggregate value of $17.9bn. In 2007, there were a total of 553 deals valued at an aggregate of $145.2 billion. When comparing H1 2007 to 2013 YTD, in H1 2007 there were 286 deals valued at $96.8bn; 65% more in terms of number of deals and 81% in terms of aggregate value of deals in comparison to number and total value of deals so far this year. The aggregate deal value reached its lowest point in 2009, when private equity-backed deals in the consumer & retail industry were valued at $16.9bn which is comparatively lower than the value of such deals announced in the 2013 YTD. There was a 161% increase in the aggregate value of buyout deals from 2009 to 2010, but then the value gradually started to decrease.

During 2006-2007 consumer & retail made up 18% of the number of private equity-backed deals, and represented 22% of aggregate deal value in 2007. The number of deals in the consumer and retail industry as a proportion of private equity-backed buyout deals was consistent between 2008 and 2012 and accounted for 15% of all buyout deals each year. The aggregate deal value as a proportion of the global total increased from 12% in 2008 to 19% in 2010, and subsequently decreased to 15% in 2012. In 2013 YTD, the number and aggregate value of consumer & retail deals as a proportion of all private equity-backed buyout deals is at its lowest point in the period from 2006 – present, with the total value contributed at 11% in terms of aggregate value and 13% in terms of the global aggregate number.

From 2006 – 2013 YTD North America has proved to be the most prominent region for consumer & retail deals, accounting for 56% of the total value of deals in this sector. However as of this year, Europe has been deemed as the most attractive region for the private equity-backed investments in the consumer & retail industry, accounting for 58% of the global aggregate value of deals, with Northern American investments constituting 35% of the global total value.

The prominence of Europe with regards to the consumer & retail industry in 2013 YTD can in part be attributed to the largest deal in this industry so far this year, namely the secondary buyout of Springer SBM (Springer Science + Business Media) announced in June 2013. BC Partners acquired the company for €3.3bn from EQT Partners and Government of Singapore Investment Corporation (GIC).

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