BGL Consumer Products & Retail Insider: Growth-Seeking Buyers Keep the M&A Engine Running
October 13 2015
The BGL Consumer Products & Retail Insider addresses capital markets and mergers and acquisitions activity, financial and operating performance of certain publicly-traded companies, and trends and issues affecting the industry.
Despite heightened media focus on decelerating global growth, the outlook on the U.S. economy remains positive, buoyed by a vibrant housing market and rising retail sales. Acquisition appetite remains robust, with high-growth consumer businesses in strong demand, as capital availability and accommodative credit markets continue to support strong valuations for growing brands.
Developing themes in the Home Environment, Outdoor & Active Lifestyle, and Pet industries are explored:
Lifestyle trends, coupled with positive economic and category tailwinds, are fueling growth in the fragmented home furnishings industry, where the opportunity to consolidate is drawing interest from private equity funds which are actively pursuing new investments. New Water Capital recently completed the first investment for its inaugural fund with the recapitalization of Pride Family Brands. John Disa and Jason Neimark discuss the platform and opportunities in the growing outdoor living category.
The Ecommerce channel is evolving very rapidly in the Outdoor industry, with significant room to increase penetration. TSG Consumer Partners recently completed an investment in Backcountry.com, an online specialty retailer of outdoor gear and apparel—its first investment in the Outdoor space. Jennifer Baxter Moser shared her insight on the business and changing dynamics in the industry.