Today’s opening theme is eyecare, a sector that is creating appealing opportunities for private equity. PE Hub’s Sophie Rose has rounded up six recent deals in the sector, along with insights from FTI Consulting’s Christopher DelGrosso on the key market drivers.
Next, we turn to a sector where Houlihan Lokey expects a rise in M&A activity due to shifting consumer trends: nutrition and wellness. A more holistic approach to health has increased demand for natural, organic and nutritious foods, driving growth in the industry.
Lastly, I recap seven deals we covered in the consumer sector in this week’s deal highlights.
Moderately fragmented
The eyecare industry represents a highly attractive opportunity to private equity firms, with a number of deals already announced in 2024, Sophie Rose writes.
“Recent deal activity likely reflects a continuation of interest in the vision space that was temporarily paused due to an unfavorable interest rate environment and valuation misalignment,” Christopher DelGrosso, managing director at FTI Consulting, told PE Hub. FTI Consulting is a business consultancy firm headquartered in Washington, DC.
“Among medical specialties, vision is still moderately fragmented and has some of the highest number of practices that have been held by PE companies for over five years, indicating there will likely be continued exits to come,” said DelGrosso, who works in FTI’s Wayne, Pennsylvania, office.
“Further, optical services specifically are less prone to some of the reimbursement and regulatory pressures seen in other specialties, including ophthalmology.”
The eyecare market is a growing industry, generating revenue on a high scale. In 2024, the eyecare market worldwide generated revenue of $5.46 billion, according to Statista. The market is projected to experience an annual growth rate of 2.84 percent until 2029.
Looking at this, it is unsurprising that PE firms are picking up eyecare companies.
Below is one of the six recent investments that show PE eyeing up the optical industry.
Ardian buys majority stake in Vista Vision
In October, Ardian picked up a majority stake in Vista Vision.
Headquartered in Milan, where it was founded in 2003, Vista Vision has 12 clinics in Italy and five in Romania, focusing primarily on laser surgery for the correction of myopia and on cataract surgery.
Read the full story here to find out the deals announced in the sector.
Stay tuned for more on the eyecare sector – I will be publishing a deep dive on Ardian’s acquisition of Vista Vision in the coming weeks.
Proactive approach
The nutrition and wellness industry will see more growth and M&A as private equity targets “high-growth” wellness brands, said Jorge Granados, a senior vice-president in Houlihan Lokey’s consumer group, in a statement.
The confirmation of Applied Nutrition’s IPO is another “bellwether” for the robust growth in the nutrition and wellness market, which is thriving on shifting consumer trends, Granados said. Applied Nutrition is a British premium nutrition supplements provider for professional athletes and fitness enthusiasts. “Increasingly, consumers are taking a proactive approach to their health, seeking out products that support immunity, gut health and cognitive well-being.”
The rising demand for supplements, along with the growth of ecommerce and subscription models, has positioned companies like Applied Nutrition to meet evolving consumer needs, he said. “The market’s focus on personalized nutrition and the rise of targeted products for segments such as female and cognitive health are also compelling to investors, offering a diversified growth strategy in a dynamic market.”
The performance supplements and specialized products market is expected to grow as consumers focus more on health and long-term wellness, he added. “Private equity, in particular, has a strong interest in the sector, driven by favorable global macro trends along with promising growth prospects and attractive profitability.”
With more access to debt and falling interest rates, financial sponsors will be better positioned to participate in more transactions, he added.
Here are some of the deals we covered in the sector:
EQT-backed Azelis expands in Poland with Hortimex acquisition
Evolution Capital-backed DiningRD acquires Crandall Corporate Dietitians
Turnspire snaps up nutrition ingredients provider Pharmachem
Swander Pace Capital exits vitamins and supplements maker Reliance Vitamin
For more on the sector, check out this listicle on sport, health and wellness.
Consumer takes spotlight
Sticking with the consumer sector, I highlight seven deals we covered in Europe and the US this week. Trends such as changing consumer landscape, evolving geopolitical dynamics, new personal consumption patterns, technological advancements and structural industry shifts are driving growth in the consumer sector. Private equity is also capitalizing on these trends.
Below are the deals:
Providence wraps up sale of 50% stake in Globeducate to Wendel
Verdane buys software provider for the coffee industry Cropster
Thirty-5 Capital pumps capital into Yobow
AUA Private Equity exits snack brand Raymundo’s Food Group
Graham Partners picks up sauce manufacturer Tulkoff Food Products
Blackford Capital acquires Empire Distributing as add-on for Patio Consolidation Platform
Verlinvest buys majority stake in the Climbing Hangar
For more on the consumer sector, check out Rafael Canton’s deep dive on how Quilvest helped grow Metro Franchising from 44 Dunkin’ units to 105.