Consumer M&A Heats Up

​Preliminary data from Pitchbook indicates that nearly 70 M&A transactions took place last week, with total consideration at nearly $14 billion. Some of the more notable deals, highlighted below, are heavily focused on consumer industries. 

• Federal Street Acquisition Corp., a special purpose acquisition company sponsored by an affiliate of Thomas H. Lee Partners, has agreed to merge with Universal Hospital Services (NASDAQ: UHOS, “UHS”). The combined company, to be renamed Agiliti, Inc., has an initial implied enterprise value of approximately $1.7 billion and will trade on the NASDAQ, according to the press release. For nearly 80 years, UHS has provided equipment management services to the healthcare industry.

• Last Monday, ACON Investments announced it had signed a definitive agreement to acquire Goody Products from Newell Brands (NYSE: NWL). Goody manufactures hair styling tools and accessories. Terms of the deal were not disclosed, and the sale is subject to regulatory approvals.

• After markets closed last Wednesday, Best Buy (NYSE: BBY) announced that it had acquired GreatCall for $800 million. GreatCall is known for its emergency response services and products, including its JitterBug phone offering for seniors. According to the press release, GreatCall has over 900,000 paying subscribers.

• MVMT Watches has agreed to sell to Movado Group (NYSE: MOV). Founded in 2013, MVMT focuses on millennials with affordable, minimalist-designed watches. Movado has agreed to pay an initial $100 million and may pay up to an additional $100 million in the future, based on contingencies.
  

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• Zoës Kitchen (NYSE: ZOES) has agreed to be acquired by Cava Group, a fast-growing Mediterranean chain with 66 restaurants. Cava offered $12.75 per share, or an enterprise value of roughly $300 million, to Zoës, which operates a fast-casual chain of 261 restaurants. The acquisition will be partially backed by an investment from Act III Holdings, an investment vehicle created by Panera Bread’s founder, Ron Shaich.