US Consumer Markets Deals insights Q1 2017

 

Overview

The US Consumer Markets deals sector experienced its strongest performing quarter in the past 10 years in terms of both deal value and volume. Deal value in the sector was driven by the market’s largest deal, British American Tobacco PLC’s (BAT) pending $49.4 billion acquisition of Reynolds American Inc., which comprised 54% of the total deal value for the quarter. Excluding the BAT/Reynolds deal, the quarter still performed strongly with a 51% increase in deal value from Q4 2016 and a 58% increase from Q1 2016.

      

Megadeal value is up, while volumes remained relatively stable

  • Megadeals drove deal value during the quarter with seven megadeals totaling $85.0 billion compared with six megadeals totaling $14.8 billion in Q4 2016 and eight megadeals totaling $20.3 billion in 2016. 
  • In addition to the $49.4 billion BAT/Reynolds deal, other significant megadeals in Q1 2017 included the pending $17.8 billion Reckitt Benckiser/Mead Johnson Nutrition deal and the pending $9.1 billion Mars/VCA deal. 
  • Transactions below a billion dollars decreased in both value and volume terms this quarter compared with 
    Q4 2016.

Contact us

Dominic Ricketts
Partner, Consumer Markets Deals Leader
Tel: +1 (646) 471 2301
Email

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

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