Packaging Industry M&A Activity Tracking
March M&A activity in Global Packaging closed out the first quarter of 2024, recording 75 deals in total compared to 85 recorded in the final quarter of 2023. 20 deals were recorded for the month, which represented an increase over last year but a lower monthly volume than experienced in the second half of 2023. Weak M&A activity in March was the result of decreased financial and strategic buyer participation, which lagged the prior month’s volume by two and three deals, respectively. Overall, increased M&A activity experienced in the second half of 2023 has reverted, with Global Packaging M&A through Q1 of 2024 being more in line with lower deal volumes experienced in the first half of 2023.
- Strategic buyers accounted for 39 deals in Q1, which represented a decrease of three deals from the prior quarter. Furthermore, strategic buyers have struggled to maintain historical activity levels since early 2022, recording less than 40 deals in eight out of the last nine quarters
- Financial buyers posted seven fewer deals in Q1 when compared to the prior quarter with both add-on and platform acquisitions falling by at least three deals each. Furthermore, Q1 represented the lowest quarterly deal volume for financial buyers since Q2 2023
- The Machinery & Distribution subsector was one of four subsectors to post an increase in deal volumes relative to Q1 2023. The subsector recorded 20 deals in Q1, which was up from nine in Q1 2023
- Despite declines from the prior quarter, when compared to Q1 of 2023, four of the six subsectors have increased in deal volume. Overall quarterly transaction volume is eight deals above Q1 2023
- Each tracked end market experienced declining or stagnant quarterly volumes when compared to Q4. The Food & Beverage end market was the only end market not to decline in the quarter, matching prior quarter volumes, while the Medical end market posted the largest decline, falling by six deals
Sources: S&P Capital IQ, Company Websites, Pitchbook, Company Reports, PMCF
Major News
- Majority of PFAS Used in F&B Packaging Unregulated and Untested for Health Hazards, Reveals Study (Packaging Insights)
https://www.packaginginsights.com/news/majority-of-pfas-used-in-fb-packaging-unregulated-and-untested-for-health-hazards-reveals-study.html - Provisional EU Law to Cut Most Single-Use Packaging(Packaging World)
https://www.packworld.com/news/article/22889199/provisional-eu-law-to-cut-packaging-waste - Inhance Wins EPA Fluorination Case (Plastics News)
https://www.plasticsnews.com/news/inhance-wins-epa-fluorination-case - Powell: Fed Is ‘Not Far’ From Gaining Confidence Needed to Cut Rates (The Wall Street Journal)
https://www.wsj.com/economy/central-banking/powell-fed-is-not-far-from-gaining-confidence-needed-to-cut-rates-75c9b061?mod=central-banking_more_article_pos62 - U.S. Consumers Still Aren’t Feeling Sunnier (The Wall Street Journal)
https://www.wsj.com/economy/consumers/u-s-consumers-still-arent-feeling-sunnier-d1dda3af?mod=consumers_more_article_pos3
Download Packaging M&A Update – March 2024
