Packaging M&A Update – August 2023

Packaging Industry M&A Activity Tracking

Global Packaging M&A posted 27 transactions in August, up eight from July levels. Transaction activity in the month was at its highest level since March 2022, driven by a rebound in strategic buyer transactions. Financial buyer activity was mixed in the month as platform private equity deal levels remained elevated in August, while add-on acquisitions recorded their weakest month of 2023. Overall, August transaction levels were significantly above average monthly deal volumes due to a balanced level of activity from both strategic and financial buyers.

• In August, strategic buyers accounted for 15 deals, or 55% of deal volume, which was an increase of eight deals over July levels. Transaction volumes attributable to Strategic buyers were at their highest levels since December 2021
• Financial buyers recorded 12 deals for the second consecutive month. Platform acquisitions recorded eight transactions, up one from July, and registered their highest month from a deal volume standpoint since June 2021 despite higher interest rates and challenging credit markets
• The Paper Packaging subsector recorded 15 deals in August, up nine from July levels. The subsector’s strong month was driven by a resurgence in Corrugated and Folding Carton deals
• The Industrial end market posted 13 transactions in August, which represents the end market’s best month since 2021. When compared to year-to-date 2022 levels, the end market has recorded two additional deals in 2023

Although Global Packaging M&A has experienced lower deal volumes in 2023, strong activity from both strategic and financial buyers in August was an encouraging sign for the Packaging M&A market. Notably, the uptick in deal activity in August was primarily due to increased private equity platform activity which has led to a more positive outlook for the remainder of 2023. If you are a Packaging company considering a merger, acquisition, sale, or recapitalization in the short or longer term please consider leveraging PMCF’s transaction planning and execution expertise to best position your company in a transaction.

Sources: Capital IQ, PitchBook, Thomson Reuters, Company Reports, PMCF. Data as of August 31, 2023

Packaging M&A By Subsector

Total Packaging M&A By End Market

Packaging Transactions By Buyer Type

Notable M&A Activity

Public Entity Performance

Major News

• Packaging by the Numbers 2Q2023 (Packaging Digest)
  https://www.packagingdigest.com/market-research/packaging-numbers-2q23/gallery?slide=8
• U.S. Seeks Middle Ground in Deeply Divided Plastics Treaty Talks (Plastics News)
  https://www.plasticsnews.com/news/us-seeks-middle-ground-plastics-treaty-talks
• Reusable and Refillable Packaging Sales to Reach $53.4 Billion by 2027, says Smithers (Plastics News)
  https://www.plasticsnews.com/news/reusable-and-refillable-packaging-sales-reach-534-billion-2027-says-smithersreusable
• Recession Fears Have Been ‘Blown Out of the Water,’ Long-Serving Fed President Says (The Wall Street Journal)
  https://www.wsj.com/economy/central-banking/recession-fears-have-been-blown-out-of-the-water-long-serving-fed-president-says-da0b5461?mod=central-banking_more_article_pos19
• Job Market Cools but Is Far From Freezing (The Wall Street Journal)
  https://www.wsj.com/economy/jobs/job-market-cools-but-is-far-from-freezing-b9fb7f7f?mod=jobs_more_article_pos2

Download Packaging M&A Update – August 2023