According to the Thematic Intelligence report on ‘Global M&A Deals in 2022’ published by GlobalData, each of the four M&A deals that took place in the apparel sector in 2022 had a value of over $1bn as compared to the eight in 2021.
Though it might appear M&A is slowing, it’s clear apparel brands continue to leverage it as a method to support their long-term strategies, and, survival.
For many apparel companies, M&A is a good option to allow expansion into new markets. Last week, global fashion infrastructure company PDS Limited (PDS) signed a long-term strategic partnership with Authentic Brands Group (Authentic) which aims to position the Ted Baker brand for continued growth and expansion around the world.
But M&A is also proving to be a lifeline for apparel brands that are increasingly finding themselves under pressure in recent times, with rising costs of living, a global energy crisis and inflation contributing to slowing consumer demand for fashion. British firm Joules was acquired by Next as part of a rescue deal worth GBP34m (US$41.5m), a move supported by industry onlookers who said it would breathe new life into the brand.
As the fashion sector continues to undergo rapid change; on the one hand trying to become more sustainable and slow consumption while on the other continuing to drive sales and contribute to global economies, we watch with a keen interest how M&A deals shape the apparel sector going forward.
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