US Retail and Consumer Deals insights 2016 year in review

 

Overview

The retail and consumer deals market ended 2016 with an increase in deal volume and a decline in deal value when compared to 2015. Total deal volume grew steadily since Q4 2015, and increased by 19% in 2016 compared with 2015. The retail and consumer sector comprised approximately 12% of total US deal volume during 2016 compared to 10% in 2015.  

Despite the positive momentum in the volume of deals, deal value declined 56% to $111.9 billion in 2016 from $251.6 in 2015. This was driven by lower average megadeal (transactions exceeding $1.0 billion) value when compared with the previous year. 

      

Megadeals are down year-over-year

  • There were 28 megadeals announced in 2016, a decrease from the 32 megadeals in 2015.
  • Deal value for megadeals was $74.0 billion in 2016, compared with $216.1 billion in 2015, a decline of 66%. The decline was primarily driven by lowervalue megadeals when compared with the previous year. For example, the largest deal of 2015 was H.J. Heinz Co.’s acquisition of Kraft Foods Group Inc. for $53.1 billion, whereas the largest deal of 2016 was the pending Danone SA / The WhiteWave Foods Co. acquisition for $10.4 billion.
  • Deal value and volume for transactions above $500 million decreased by 62% and 8%, respectively, in 2016. Deals below $500 million increased in both value and volume in 2016 compared with 2015. 

Contact us

Dominic Ricketts
Partner, US Retail & Consumer Leader
PwC’s Deals Practice
Tel: +1 (646) 471 2301
Email

Caroline Tetelboum
Partner, PwC’s Deals Practice
Tel: +1 (646) 471 7491
Email

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