Boston, MA – Capstone Headwaters released its Juvenile Products & Toys update today, reporting that COVID-induced store closures and lockdown measures severely impacted retail spending at the onset of the pandemic, with retail sales falling 14.7% in April, according to the U.S. Census Bureau. However, as personal consumption expenditures and retail sales have rebounded in recent months, the Juvenile Products & Toys industry has experienced a surge in demand.
“While COVID-19 caused an initial shock to industry participants with companies focused on the health and safety of their families and employees, those with a direct-to-consumer platform (whether through their own website or via retailers such as Amazon, Walmart and Target) continued to perform relatively well during the pandemic. As industry participants regain financial footing this holiday season, merger and acquisition (M&A) activity is likely to experience an uptick as buyers seek to acquire established brands who were able to either remain stable or grow during the pandemic,” said Sophea Chau, Managing Director.
Merger and acquisition (M&A) activity has slowed through Q2 2020, with 13 transactions announced or completed in year-to-date (YTD) 2020, compared to 22 transactions in YTD 2019. Strategics, which accounted for nearly 85% of deals, have spent much of the pandemic focusing on defending revenues and fortifying supply chains while private equity (15% of deals) have sought to support existing portfolio companies.
ABOUT CAPSTONE HEADWATERS
Capstone Headwaters is one of the largest and most active independent investment banking firms in the United States. The firm has a rich 15+ year history of achieving extraordinary results for middle market entrepreneurs, business owners, investors, and creditors. Capstone offers a fully integrated suite of corporate finance services, including merger & acquisition, debt & equity placement, corporate restructuring, valuation & fairness opinion, financial advisory, and ESOP advisory services. Headquartered in Boston, the firm has 150+ professionals across 16 offices in the U.S., with and an international presence including over 450 professionals in 40 countries. With 16 dedicated industry groups, the firm delivers sector-specific expertise through large, cross-functional teams on a global basis. Capstone has been named “U.S. Middle Market Investment Bank of the Year” for the past 9 consecutive years and is consistently recognized as one of the top investment banking firms to work for. For more information, visit www.capstoneheadwaters.com.
For More Information Contact the Key Report Contributors: