Consumer products deals activity overview

Megadeals underpin increase in beverage deal activity

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The food sector provided the quarter’s largest number of transactions, but for the second consecutive quarter beverage deals were prominent at the top of the list of the biggest deals.

“As consolidation reaches its advanced stages in the individual segments of the beverage sector, the next wave of consolidation may produce further combinations across categories.” - Steve Wills, Global Beverages Leader

Beverage

Deal volume in the beverage sector increased from 57 deals in Q2 12 to 64 deals in Q3 12, but total deal value decreased from US$29.1b in Q2 12 to US$15.0b in Q3 12. AB InBev’s purchase of Modelo boosted second-quarter deal value, and in the third quarter the beverage sector was once again prominent at the top of the leaderboard.

The sector provided the quarter’s megadeals: the purchase of F&N by Thai Beverage for US$7.2b and the related purchase of APB by Heineken for US$6b.

Household and personal care

Deal volume in the household and personal care sector increased by five transactions to 37 deals in Q3 12. Total disclosed deal value jumped from US$670m to US$1.9b, largely because of the presence of two HPC deals in the top 10 transactions — Procter & Gamble’s buyout of its Spanish joint venture partner in its European feminine care and diaper business and Church & Dwight’s move into new products with the purchase of Avid Health.

Food

There were 206 food subsector deals in the third quarter, a decrease of six deals from Q2 12. Total disclosed value in the food sector decreased sharply from US$20.8b in Q2 12 to US$7.4b in Q3 12. There were four food sector deals in the top 10 transactions, although all had a value of less than US$2b.

Tobacco

There were just three deals in the highly consolidated tobacco sector in the third quarter, none of which had a disclosed value. Two of the deals were in-border transactions, one in China and one in the Philippines, while the third was a cross-border deal in Europe.


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Number and value of beverage deals Q4 09to Q3 12

Number and value of beverage deals Q4 09 to Q3 12 ×

Source: EY’s analysis of Thomson Reuters data.

Number and value of household and personalcare deals Q4 09 to Q3 12

Number and value of household and personal care deals Q4 09 to Q3 12 ×

Source: EY's analysis of Thomson Reuters data.

Number and value of food deals Q4 09to Q3 12

Number and value of food deals Q4 09 to Q3 12 ×

Source: EY's analysis of Thomson Reuters data.

Number and value of tobacco deals Q4 09to Q3 12

Number and value of tobacco deals Q4 09 to Q3 12 ×

EY’s analysis of Thomson Reuters data.