SOURCE: Brown Gibbons Lang & Company LLC

Brown Gibbons Lang & Company

April 16, 2015 07:00 ET

Brown Gibbons Lang: Passionate Consumers Buoy M&A Growth

Consumer Products Industry Report Focused on Health & Wellness, Outdoor & Active Lifestyle, and Pet Industries

CLEVELAND, OH and CHICAGO, IL--(Marketwired - April 16, 2015) - Consumer products M&A is very robust, driven by accelerating consumer spending and passionate pursuit of personal fulfillment, according to the Consumer Products & Retail Services Insider, an industry report released by leading middle market investment banking firm Brown Gibbons Lang & Company (BGL) www.bglco.com.

Consumer spending is forecasted to accelerate in 2015 with economic growth, declining unemployment, and low gasoline prices supportive of disposable income expansion. Investor confidence is growing against this favorable backdrop, with the Consumer Products industry a beneficiary. Acquisitions are in focus to meet ambitious revenue and earnings targets for growth-starved, cash-rich corporate buyers, while investors are drawn to niche brands in enthusiast categories experiencing strong secular tailwinds.

The BGL report, now available online, examines developing trends in the Health & Wellness, Outdoor & Active Lifestyle, and Pet industries:

  • Growing focus on preventative health and disease prevention is driving increased consumption of vitamins and supplements, with sports nutrition seeing outsized growth and generating broad interest from strategic and financial buyers looking to snatch up marquee brands at historically high multiples.
  • Outdoor enthusiasts are growing in number, expanding niches in performance-enhancing gear. Specialized sporting gear players are favored by investors, with outdoor niches such as hunting attracting strong interest from both strategic and financial buyers, as evidenced by a flurry of recent investment activity.
  • Premium products and services are expected to fuel growth in the fragmented pet industry, which increasingly has seen investors circling the space, including CPG companies like The J.M. Smucker Company and Mars Petcare, both buyers in multibillion dollar transactions. Private equity is aggressively pursuing acquisitive growth for current investments.

Brown Gibbons Lang & Company publishes periodic research reports on a variety of industries including automotive; business services; consumer products and retail services; building products and construction materials; environmental and energy services; healthcare and life sciences; human capital management outsourcing; industrials; metals; and plastics and packaging.  Download BGL Insider reports at www.bglco.com

Attachment Available: http://www.marketwire.com/library/MwGo/2015/4/15/11G038594/mw19ivdqieeqbb1dp319jo12fh17u82-702771758839.pdf

Contact Information