
UK consumer sector: private equity dealflow up 45% in 2012

High street woes notwithstanding, the UK consumer sector proved to be ripe for investment opportunities last year: private equity dealflow was up by 45% compared to 2011 figures while the overall value of these investments rose by a quarter.
The UK consumer sector was home to 126 transactions worth an overall €8.5bn last year, a considerable step up from the €6.8bn recorded over 87 deals in 2011, according to unquote" data. Despite the much-publicised issues ailing several high-profile brands, activity in this segment has come a long way since the dark days of 2009: private equity investors only completed 63 deals worth an overall €1.3bn in the consumer sector that year.
The 2012 figures were considerably bolstered by a series of sizable deals taking place in the consumer sector last year. Buyouts were of course at the fore, with Iceland Foods taking the crown: South Africa's Brait Private Equity, along with Dubai-based retailer Landmark Group and Iceland's founders, backed a £1.55bn buyout of the frozen foods retailer in February. Still in the retail space, Clayton Dubilier & Rice acquired a significant stake in the buyout of discount retailer B&M Retail, a deal rumoured to be valued around the £950m mark, at the end of the year.
Further down the value range, other well-known brands managed to catch the eye of private equity players as well. In December, US-based private equity firm Leonard Green & Partners bought 25% of fashion retailer Topshop for around £350m from its parent company Arcadia. The quintessentially British car manufacturer Aston Martin also attracted a €190m investment from Italian GP Investindustrial, which bought a 37.5% stake from Kuwaiti investment house Investment Dar in December.
Although private equity investors remain hungry for strong consumer-facing assets, recent months have been a reminder that the tough trading environment will keep taking its toll on the high street. Private equity owner OpCapita – which had bought troubled electronic goods retailer Comet earlier in 2012 for a nominal £2 – called in the administrators in November. And more recently, clothing retailer Republic – then owned by TPG Capital – went into administration in February this year before being acquired by Sports Direct.
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater