Retail & Consumer Update: Fourth Quarter 2011
Deloitte Corporate Finance LLC
This quarter’s Retail & Consumer Update, produced by Deloitte Corporate Finance LLC (DCF), summarizes the most recent transactions within this industry along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
- Middle-class consumers remained cautious during the 2011 holiday season as many retailers conducted aggressive promotions to drive holiday sales. However, many upscale department stores continued to outperform, as retailers such as Nordstrom and Saks realized healthy same store sales growth in November and December.
- In Q4 2011, there were 185 transactions in the consumer and retail industry as M&A activity continued at a modest pace, consistent with overall activity seen throughout 2009 and 2010.
- Few large transactions in Q4 2011 resulted in the lowest average transaction value since Q4 2008. The largest transaction in Q4 2011 included Olympus Partners’ acquisition of NPC Acquisition Holdings for approximately $755 million. NPC is the largest Pizza Hut franchisee and one of the largest franchisees of any restaurant concept in the U.S. according to the 2010 “Top 200 Restaurant Franchisees” by Franchise Times.
Download the Retail & Consumer Update below.