It has been a turbulent year for the apparel, accessories and luxury goods sectors. Covid-19 has accelerated growth in ecommerce, whilst brands with an emphasis on retail stores as their main route to market have faced significant disruption.
Building products and merchants deal volumes in the UK decreased by approximately 8% in 2020 compared to 2019. The optimism created by the election of a majority government in December 2019 rapidly deteriorated as the global pandemic took grip towards the end of the first quarter.
The ICT Services market has demonstrated strong resilience throughout the Covid-19 period. Looking forward, it is set for strong growth as we progress through 2021 driven by increased Internet of Things development and further adoption of AI assisted services.
M&A activity in the food and beverage sector has increased in comparison to H1 2020, with 72 deals completed involving UK target companies. Total disclosed transaction values fell to c. £1bn although this does not include the reported £6.8bn acquisition of the UK’s 3rd largest retailer Asda by TDR Capital.
Industrials deal volumes in the UK decreased by almost 40% in H1 2020 compared to H2 2019. The optimism created by the election of a majority government in December 2019 rapidly deteriorated as the global pandemic took grip towards the end of the first quarter.
While the ICT Services Sector has proved more resilient than other verticals in the face of Covid-19, there still exists a number of challenges for IT Services companies to tackle, as restrictions imposed by the government continue to waver and affect the ability of businesses to operate on a normal basis.
M&A activity in the food and beverage sector has fallen slightly in comparison to H2 2019, with 64 deals completed involving UK target companies.
Over the last two quarters, M&A activity increased in comparison to the previous two quarters, totaling 198 deals, a slight increase over the 191 deals in the previous two quarters.