North America’s drinks industry sees a drop of 13.9% in deal activity in Q3 2020

North America’s drinks industry saw a drop of 13.9% in overall deal activity during Q3 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

A total of 56 deals worth $1.1bn were announced for the region during Q3 2020, against the last four-quarter average of 65 deals.

Of all the deal types, M&A saw most activity in Q3 2020 with 29, representing a 51.8% share for the region.

In second place was venture financing with 18 deals, followed by private equity deals with nine transactions, respectively capturing a 32.1% and 16.1% share of the overall deal activity for the quarter.

In terms of value of deals, M&A was the leading category in North America’s drinks industry with $972.7m, while venture financing and private equity deals totalled $107.25m and $22m, respectively.

North America drinks industry deals in Q3 2020: Top deals

The top five drinks deals accounted for 62.9% of the overall value during Q3 2020.

The combined value of the top five drinks deals stood at $693m, against the overall value of $1.1bn recorded for the quarter.

The top five drinks industry deals of Q3 2020 tracked by GlobalData were:

1) Diageo’s $610m acquisition of Aviation Gin and Davos Brands

2) The $25m venture financing of Hint by GingerBread Capital, Medina Heights Capital Partners, Philippe Laffont and Springboard Growth Capital

3) Convivialite Ventures, Fat Mike and Pat McAfee’s $23m venture financing of Supplying Demand

4) The $22m private equity deal with Celsius Holdings by Boyu Capital Consultancy

5) Cambridge Companies SPG, Monogram Capital Partners and Powerplant Ventures’ venture financing of Vive Organic for $13m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.