CLEVELAND, Jan. 31, 2017 /PRNewswire/ -- Renewed optimism could provide the foundation to buoy consumer spending, according to the Consumer Products & Retail Insider, an industry report released by Brown Gibbons Lang & Company (BGL) www.bglco.com. 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.
The BGL report, now available online, examines developing trends in the Home Environment and Automotive Aftermarket industries.
Portfolio honing is fueling M&A in the Home Goods market as industry participants sharpen focus on core, growth-generating businesses. Newell Brands has been actively reshaping its product portfolio following the transformational Jarden acquisition last April, divesting non-core brands and reinvesting proceeds into acquisitions for priority categories, including the Sistema and WoodWick brands for its Food Storage and Home Fragrance businesses. Lifetime Brands added five brands in three acquisitions to broaden its Housewares portfolio.
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 accelerate. Headline deals were announced by Polaris (Transamerican Auto Parts Company) and Icahn Enterprises (Pep Boys), while O'Reilly Automotive and Genuine Parts Company each announced acquisitions during the last 12 months. The industry is also attracting significant equity and debt interest. The sector's size, fragmentation, and enthusiast consumer base are draws for private equity, while lenders like its countercyclical demand and recurring revenue business models. In 2016, Goldman Sachs Merchant Banking (K&N Engineering), Huron Capital Partners (Drake Automotive Group), and The Sterling Group (Highline Aftermarket) formed new platforms and TA Associates (Truck Hero) and J.W. Childs (RevZilla Motorsports) revved up with add-ons.
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company is a leading independent investment bank serving the middle market. BGL specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions, with global industry teams in Business Services, Consumer, Environmental & Industrial Services, Healthcare & Life Sciences, Industrials, and Real Estate. BGL has offices in Chicago, Cleveland, and Philadelphia, and real estate offices in Chicago, Cleveland, Irvine, and San Antonio, in addition to Global M&A partner offices in more than 50 countries across 5 continents. BGL is able to deliver to our clients unparalleled access to strategic relationships, investors, and opportunities globally. For more information, please visit www.bglco.com.
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