For consumer product and retail companies, 2017 offered more of the steady M&A activity that has characterized the last several years. Not accounting for large deals, M&A deal value was a scant 2% below the previous year, with activity essentially matching the hot market of 2016. Simply keeping pace may have felt like a small reprieve, but even so, the pause in rapid M&A market growth will likely be short lived. Private equity firms are sitting on piles of dry powder, while brick-and-mortar retail and consumer products companies report record amounts of cash reserves.

1. Can M&A
Reignite
Growth in
Consumer
and Retail?
2018 Consumer and Retail M&A Report Read full report

2. Legacy consumer
and retail companies
are fighting for their
futures as they
search for new
markets, new
consumers,
and new ways
to grow.
Read full report2018 Consumer and Retail M&A Report

3. Finding
opportunities
where adjacent
industries and
sectors can
converge is the
way forward—
and M&A is how
industry stalwarts
will get there.
Read full report2018 Consumer and Retail M&A Report

4. Legacy consumer
and retail
companies
should focus on
“convergence”
acquisitions with
adjacencies to
disrupt and
stay relevant.
Read full report2018 Consumer and Retail M&A Report

5. Example
General Mills’ acquisition of
Blue Buffalo Pet Products is its
largest acquisition in 18 years
and the company’s first foray
into natural pet food. With the
purchase, General Mills didn’t
just add natural pet food to
its product lines—it bought
additional top-line growth
and new customers in
an expanding market.
Read full report2018 Consumer and Retail M&A Report

6. Convergence is quickly
becoming a key driver for
continued M&A activity
as many companies seek
innovative pathways for
growth-focused deals.
But such deals are
inherently more risky
than their consolidation
counterparts.
Read full report2018 Consumer and Retail M&A Report

7. Many companies
have developed strong
playbooks for acquisition
integrations that rely
on stripping out costs
and realizing headcount,
procurement,
and operational
synergies.
Read full report2018 Consumer and Retail M&A Report

8. Convergence deals are
a different beast: cost
savings will always play
a role, but the focus
must prioritize the
integration of
potentially divergent
cultures. Identifying
the right targets is
only half the battle.
Read full report2018 Consumer and Retail M&A Report

9. A.T. Kearney is a leading global management consulting firm with offices in 40 countries.
Since 1926, we have been trusted advisors to the world’s foremost organizations. A.T. Kearney
is a partner-owned firm, committed to helping clients achieve immediate impact and growing
advantage on their most mission-critical issues. For more information, visit www.atkearney.com.
Talk to an expert Read full report
Consult with our experts on your
M&A portfolio and integration
planning strategies.
2018 Consumer and Retail M&A Report