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Consumer Products Deals Quarterly - Q4 2011 - Volume holds up - EY - Global

Consumer products deals quarterly: Q4 11

Volume holds up, but total value declines

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Deal volumes, Q1 2009 to Q4 2011

Deal volumes, Q1 2009 to Q4 2011

Source: EY’s analysis of FactSet Mergerstat data.
*LTM = Last 12 months

Disclosed deal values, Q1 2009 to Q4 2011

Disclosed deal values, Q1 2009 to Q4 2011

Source: EY’s analysis of FactSet Mergerstat data.
*LTM = Last 12 months




The volume increase was most marked in the beverage sector, where deal activity increased by 24% over the year.

Deal volumes increased slightly, both on a quarterly and an annual basis, but total deal values declined over both periods. The drop in value is largely accounted for by a lower total deal value for megadeals in 2011 compared with the previous year.

Deal volumes increase

Deal volumes,
Q1 2009 to Q4 2011

Deal volumes, Q1 2009 to Q4 2011

Deal volumes increased slightly in Q4 2011 to 298 deals, a 2% increase from the 293 deals in Q3 2011. However, because of the low level of activity in the first-quarter of the year, the number of deals on a long-term moving average basis decreased by 5% (15 deals).

On an annual basis, deal volumes increased by 3% in 2011 to 1,164 deals compared with 1,128 deals in 2010. The volume increase was most marked in the beverage sector, where deal activity increased by 24% over the year, compared with a 6% rise in household and personal care (HPC) transactions and a 5% drop in food.

Deal value decreased

Disclosed deal values,
Q1 2009 to Q4 2011

Disclosed deal values, Q1 2009 to Q4 2011

Total disclosed deal value in Q4 2011 decreased by 34% to $19.6b from $29.9b in Q3 2011, largely because of the absence of any megadeals in the quarter. Total third-quarter deal value had been boosted by the $10.8b SABMiller/Fosters transaction.

When that megadeal is excluded, Q3 2011 total disclosed deal value was $19.1b, and on that basis total deal value in Q4 2011 increased by $0.5b (3%). The average disclosed deal value, however, decreased from $150m to $141m.

Compared with the previous year, total disclosed deal value decreased in 2011 by 17% from $102b to $84b. During the year there were 488 deals with disclosed deal values, including two megadeals: the $10.8b SABMiller/Fosters deal and the E.I. du Pont de Nemours & Co. purchase of Danisco for $6.1b.

Excluding these megadeals, there were 14 deals in the year with a value in excess of $1b. In comparison, in 2010, 431 deals had a disclosed deal value, including three megadeals: the $19.16b Kraft/Cadbury deal, Heineken’s purchase of FEMSA Cerveza for $7.6b and KKR’s purchase of Del Monte Foods for $5.3b. Other than these megadeals, there were 13 deals with a value greater than $1b.




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Consumer Products Deals Quarterly: Q4 2011

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