M&A in Housewares and Household Products Continues, Although Deal Volume is Down in 2020

In early 2020, mergers and acquisitions in housewares and household products sectors started strong, with the number of acquisitions, growth capital and venture capital transactions up 33% in January and February, compared to the first two months of 2019. Unsurprisingly, as COVID shutdowns took place, M&A deal volume dropped in March, and by the end of June, the number of M&A transactions in the first two quarters was down 38% compared to 2019. 

While the decline in deal volume is significant, the fact that the drop was not greater does reflect the overall strength of consumer products categories, compared to other sectors of the economy. Throughout COVID, demand for housewares products has stayed relatively strong; and mass, grocery and online channels all remained accessible during shutdowns. 

As we speak with strategic and private equity buyers now, we anticipate that interest from buyers will continue to remain steady through the third and fourth quarters, assuming no additional negative developments related to the economy or the pandemic. 

In particular, we are hearing from private equity buyers who are looking for add-on investments that will complement their existing investments (which will drive demand for acquisitions of smaller companies); and from both strategic and financial buyers who are looking for undervalued legacy brands. But as always, companies with strong brands and distribution, growing revenues, and healthy margins will continue to be attractive to buyers of all types. 

Here are some key deals in housewares and household products from the first half of 2020: 


Sustainable products and DTC cookware raise VC funds 

Multiple acquisitions in pet-care space 


In laundry, VC for emerging companies, and acquisitions of legacy brands  


Home fragrance 

 

Email us at info@hughesklaiber.com with questions or to discuss any aspect of mergers and acquisitions. ‍


How Can We Help You?

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.