US beverage industry sees a drop of 9.33% in deal activity in Q1 2021

Led by $4.3bn private equity deal with Nestle Waters North America, the US beverage industry saw a drop of 9.33% in overall deal activity during Q1 2021, when compared with the last four-quarter average, according to GlobalData’s deals database.

A total of 51 deals worth $5.11bn were announced in Q1 2021, compared with the last four-quarter average of 56.25 deals.

M&A was the leading category in the quarter with 24 deals which accounted for 47.1% of all deals.

In second place was venture financing with 22 deals, followed by private equity with five transactions, respectively accounting for 43.1% and 9.8% of overall deal activity in the US beverage industry during the quarter.

In terms of value of deals, private equity was the leading deal category in the US beverage industry with total deals worth $4.41bn, while M&A and venture financing deals totalled $633.38m and $74.65m, respectively.

US beverage industry deals in Q1 2021: Top deals

The top five beverage industry deals accounted for 98.7% of the overall value during Q1 2021.

The combined value of the top five beverage deals stood at $5.05bn, against the overall value of $5.11bn recorded for the quarter.

The top five beverage industry deals of Q1 2021 tracked by GlobalData were:

1) Metropoulos and One Rock Capital Partners’ $4.3bn private equity deal with Nestle Waters North America

2) The $475m acquisition of Luxco by MGP Ingredients

3) Becle SAB de CV’s $158.38m acquisition of 51% stake in Eire Born Spirits

4) The $105m private equity deal for 0.29% stake with Constellation Brands by Redstone Companies

5) Acre Venture Partners, Alpha Edison, Baron Davis and Cathy Richards’ venture financing with Uplifting Results Labs for $8.2m.