The total value of private equity buyouts in Europe’s consumer sector goods has reached €15 billion (about $16.1 billion) as of Wednesday, surpassing 2023’s total.
Acquisitions in the sector were buoyed by lower interest rates; however, the market looks increasingly bifurcated, with more capital chasing premium assets at strong multiples.
While deal value has surpassed 2023’s €13.4 billion total, total deal count is lagging, sitting at its lowest level in five years, according to PitchBook data.
Activity for both consumer durables and non-durables is showing signs of deal value rebound. Transactions in non-durables—which covers beverages, food products and personal products—are at €11.5 billion so far, up from €10.5 billion in 2023, while deal count is roughly 30% lower than last year at 120, the data shows. On the other hand, consumer durables—household appliances, electronics and recreational goods—increased deal count from 52 to 61, while total deal value is up from €3 billion to sit at €3.5 billion.
The largest 2024 deal in the sector was JAB Holdings Company‘s €2.2 billion buyout of Amsterdam-based coffee and tea group JDE Peet’s. Another prominent deal is L Catterton‘s €1.4 billion buyout of Italian makeup brand Kiko Milano.
While there has been a recovery in deal value, overall the higher-for-longer interest rates environment has meant that, outside of the sector’s premium assets, deals still face higher scrutiny, especially on profitability, according to Pitchbook’s Consumer Retail & Services report.
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