Q3 2025 Consumer and Retail M&A Trends Report

This document is a Q3 2025 trends report focusing on merger and acquisition (M&A) activity within the consumer and retail sectors. It outlines the defensive M&A strategies that have emerged due to macroeconomic and geopolitical challenges, highlighting a clear divide in market interest between premium assets and middling ones. The report details significant transactions, such as Lowe's acquisition of Foundation Building Materials and the restructuring moves by Atlas Holdings and Keurig Dr Pepper. It also discusses the pressures on sector fundamentals, including profit margin compression and changing consumer behaviors, which have led companies to prioritize cost discipline and operational resilience. The report presents data indicating a decline in deal volume but an increase in deal value, suggesting a shift towards fewer, larger transactions. Looking ahead, the report anticipates continued selective dealmaking, with an emphasis on portfolio optimization and defensive strategies as firms navigate a cautious market environment.