BGL Consumer Products & Retail Insider

Portfolio Honing Ignites M&A

Consumer confidence surged post-election on expectations that new economic policies will boost growth. Investors share the positive sentiment, as reflected in the stock market and valuations, with greater confidence likely to translate into increased transaction activity.

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John R. Tilson
Managing Director

In this edition, consolidation trends within the Home Environment and Automotive Aftermarket industries are examined:

Portfolio honing is fueling M&A in the Home Goods market as industry participants sharpen focus on core, growth-generating businesses. Companies are shedding non-core, slower-growth, or underperforming brands and using the proceeds to fund growth. Acquisitions are accelerating the path to value creation through product line, channel, and market expansion.

The M&A market is running on all cylinders in Automotive Aftermarket with consolidation continuing across the value chain.  Scale, technology, premiumization, and channel diversification are in focus as strategic acquisitions gain momentum. Transamerican Auto Parts, K&N Engineering, and Pep Boys are among the marquee assets traded over the last 12 months.

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