Insight

Consumer and retail M&A trends in Q3’21

A sustained wave of deal-making continues as consumer and retail companies remake their portfolio for a new reality

Kevin Martin

Kevin Martin

Deal Advisory Leader, Consumer & Retail, KPMG US

+1 571-635-4078

Andrew Lindsay

Andrew Lindsay

Principal, Advisory, Transaction Execution, KPMG US

+1 404-593-5917

Frank Petraglia

Frank Petraglia

Partner, Deal Advisory, KPMG US

+1 212-954-1074

Jeff Wilson

Jeff Wilson

Principal, Advisory, KPMG US

+1 757-572-3717

A continuing boom in e-commerce and store re-openings (despite the Delta outbreak) are driving a sustained wave of deal-making in the consumer and retail sector. While there was a small decline in the number of deals in Q3’21, deal value grew 10.1 percent Q-o-Q over Q2’21. (Please see the interactive charts below for highlights.)

In Q3’21, we observed several major trends in C&R deal making:

  • Private equity is playing an ever-increasing role in the market.
  • Acquirers are investing in assets that are more healthy and sustainable and fit the work-from-home lifestyle.
  • Companies are also focusing on the growing demand for pet food and pet products since the pandemic began.
  • SPACs have lost their luster among investors in C&R, declining to just four deals in Q3’21, compared with 10 deals in 1Q’21.
  • There is growing use of active portfolio management—divesting assets that are non-essential and have below-average returns and replacing them with faster growers (see Think Like An Activist Investor).

C&R Deal Volume and Deal Value

Consumer Deal Volume and Deal Value


 

Retail Deal Volume and Deal Value

 

In this quarterly report we unpack the trends across each of the sectors as well as deep dives on key areas, including:


Download the full report to uncover what is happening in these dynamic industries, how deals are being done today—and why.

Consumer and retail Q3 2021
M&A Trends in C&R, Q3 21 | Download PDF