Click me
Transcribed

More Retail M&A Ahead: Report

supermarketnews.com DATAPOINTS August 12, 2013 MORE RETAIL M&A AHEAD: REPORT Merger-and-acquisition activity in the retail/consumer sector is expected to remain strong in the second half, according to a report last week from research and consulting firm PwC. Although deal activity slowed from Q1 to Q2, corporate balance sheets remain strong and private-equity firms are flush with cash. "The declines we saw in the second quarter will likely be temporary as the pipeline for deals resets," said Leanne Sardiga, partner and PwC's U.S. retail and consumer deals leader. SOURCE: PwC 1st-Half Retail/Consumer M&A 2013 Supermarket IPOS Deals Drop Off in Q2 (50 total deals valued at $50M or more) (Amount raised by supermarket chain, in millions) (Consumer/retail sector deals valued at $50M-plus) $330M TOTAL VALUE $39.8B NO. OF 14% $500M -$1B 14% DEALS Greater $177M than $1B SPROUTS FARMERS MARKET FAIRWAY MARKET 18% $250M- $500M 2013 Supermarket Bankruptcies 30% $50M- $100M (No. of stores owned by supermarket chain, as of filing) 27 $5.4B 24% $100M- $250M BELLE FOODS MI PUEBLO 21 21 57 Q1 2013 Q2 2013 SOURCE: PwC SOURCE: Company statements SOURCE: PwC "The second half of 2013 looks promising for M&A activity in the industry given the recent pick-up in businesses starting to come to market for sale, although price expectations and seller timelines continue to be a challenge." – LEANNE SARDIGA, partner and U.S. retail & consumer deals leader, PwC 10 55G9 118 IPOS UP IN 1ST HALF Divestitures Up (Among retail/consumer product companies) (as a % of deal volume among retail/consumer product companies) Year +9.03 +396 7254 414 30 1st Half 2013 19.15 FIVE-YEAR 32% No. of IPOS Total Value 98 10.10 33% 31% 12 $3.8B 15 843 55804 507 1st Half 2012 7354 Y95 65.12 10 176 $1.2B T0.C. -3.45 Q2 Q1 SOURCE: PWC 215 68 3094 SOURCE: PwC 63 1531 S 3RE Top 6 North American Supermarket Deals 2013 Supermarkets Up for Sale DEAL VALUE (U.S.$) A&P 320 stores Loblaw to buy Shopper Drug Mart.... .$11.9B Sobeys to buy Safeway Canada.. $5.8B FRESH & EASY Cerberus buys Albertsons.. $3.3B 200 stores FOR SALE Kroger to buy Harris Teeter.. .$2.4B Spartan to buy Nash Finch.... $1.3B ARDEN GROUP 16 stores Bi-Lo Holdings to buy Sweetbay $265M SOURCE: Company statements SOURCE: Company statements AVERAGE

More Retail M&A Ahead: Report

shared by supermarketnews on Aug 13
191 views
0 shares
0 comments
Merger-and-acquisition activity in the retail/consumer sector is expected to remain strong in the second half, according to a report from research and consulting firm PwC.

Category

Business
Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy

For wordpress.com:

Click the code to copy
Customize size