Packaging Industry M&A Activity Tracking
Global Packaging M&A posted 24 deals in May, up one transaction from April levels. Despite similar activity levels compared to the prior month, buyer groups displayed varied results. Financial buyers outpaced April volumes by three deals whereas strategic buyers lagged prior month activity levels by two. While buyer activity has varied, financial buyers have been less prevalent as a portion of the total mix in 2024 compared to 2021 – 2023 when they accounted for over 50% of the deal volume. Overall, despite monthly fluctuations in activity from both buyer types, M&A activity in the packaging space continues to trend ahead of the sluggish first half of 2023.
- Strategic buyers accounted for only 11 deals in May making it the second-worst month in 2024 for this buyer group. Furthermore, strategic buyers represented less than half of the deal volume in May, which has not occurred since February
- Financial buyers tallied 13 deals in May, an uptick of three transactions over April levels. The increase in volume was attributable to platform transactions while add-on performance remained stagnant month-over-month
- Activity in the Machinery & Distribution subsector surged in May and reported the largest increase from a deal volume standpoint for any subsector relative to April volumes. The subsector posted 11 deals, accounting for 46% of May’s monthly deal volume and outpacing the prior month’s volume by nine
- After recording its strongest month since August 2023 in April, domestic activity declined by four deals and accounted for only 38% of all deal volume in May
- The Industrial end market rebounded in May after posting its lowest activity in more than 15 months in April. The end market led all subsectors in May, recording 14 transactions, an increase of nine over April levels
Sources: S&P Capital IQ, Company Websites, Pitchbook, Company Reports, PMCF
Major News
- PE Prices on the Rise; Buyers ‘Very Frustrated’ (Plastics News)
https://www.plasticsnews.com/resin-pricing/pe-prices-rise-buyers-very-frustrated#:~:text=After%20a%20contentious%20battle%2C%20North,to%20make%20the%20increase%20stick
- California Legislators Advance Bills to Limit Plastic Bags and PFAS, Update EPR (Packaging Dive)
https://www.packagingdive.com/news/california-legislature-2024-pfas-pvc-plastic-bags/716921/#:~:text=from%20your%20inbox.-,California%20legislators%20advance%20bills%20to%20limit%20plastic%20bags%20and%20PFAS,their%20session%20over%20the%20summer.
- US Packaging Manufacturers Announced More Than 600 Layoffs in May (Packaging Dive)
https://www.packagingdive.com/news/layoffs-genpak-graphic-packaging-georgia-pacific-amcor/717153/#:~:text=from%20your%20inbox.-,US%20packaging%20manufacturers%20announced%20more%20than%20600%20layoffs%20in%20May,North%20Carolina%2C%20Ohio%20and%20Wisconsin.
- Hiring and Wages are Up, Reinforcing the Economy’s Resilience (The Wall Street Journal)
https://www.wsj.com/economy/jobs-report-may-unemployment-economy-2aee1a4f
- Berry May Make Another $1B in Divestitures to Tighten Focus (Plastics News)
https://www.plasticsnews.com/news/berry-considering-1-billion-more-divestitures-tighten-business-focus#:~:text=Berry%20Global%20Group%20Inc.%2C%20in,businesses%20in%20the%20next%20year
Download Packaging M&A Update – May 2024
