Packaging M&A Update – December 2021

Packaging Industry M&A Activity Tracking

Global Packaging M&A continued a strong trend of activity in December 2021 with 33 total transactions. On the year, Packaging deal volumes recorded their highest levels since PMCF began tracking the industry with 359 deals. While 2021 deal volume far exceeded 2020 levels, December 2021 marked only the second month in the year with lower transaction levels than the same month in 2020. With that being said, transaction levels were above 30 for the third month in a row and rounded out a very strong final quarter from an M&A volume perspective.

• Strategic buyers accounted for 52% of volume in December 2021 which was a large increase compared to last year. Despite the increase, strategic buyer percentage of total transactions decreased from 55% to 50% for the year
• In 2021, private equity firms accounted for 50% of deal volume up from 45% last year, contributing to the large increase in deal volume year-over-year
• On the year, the Flexible Plastic packaging subsector posted an increase of 36 transactions, or 129%, while Rigid Plastic increased by 14 transactions, or 25%
• Paper Packaging recorded its highest monthly total of 2021 from a transaction volume standpoint in December with 20 deals overall, accounting for 61% of total deal volume
• Food & Beverage and Industrial end markets accounted for 24 deals on the month and 261 transactions on the year; transactions attributed to these end markets accounted for over 70% of the deal volume in 2021

Overall, Global Packaging M&A experienced robust deal volumes for 2021 driven by carryover transactions from 2020, sellers’ concerns over the tax environment, favorable market conditions for buyers, and strong transaction valuations for sellers. While PMCF expects strong demand for M&A in 2022, transaction volumes are not expected to maintain the record pace set in 2021. 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.

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

• The Supply-Chain Crunch Is Like a Traffic Jam. Allow Us to Explain. (Wall Street Journal)
  https://www.wsj.com/articles/the-supply-chain-crunch-is-like-a-traffic-jam-allow-us-to-explain-11640786401?mod=Searchresults_pos2&page=10
• Manufacturers Need Agility to Recover and Grow (Packaging Digest)
  https://www.packagingdigest.com/trends-issues/manufacturers-need-agility-recover-and-grow
• Recyclability Claims Face Increased Examination (Plastics News)
  https://www.plasticsnews.com/news/recyclability-claims-face-increased-examination
• Omicron Variant Is Expected to Dent Global Economy in Early 2022 (Wall Street Journal)
  https://www.wsj.com/articles/omicron-variant-is-expected-to-dent-global-economy-in-early-2022-11640631554?mod=Searchresults_pos16&page=16
• Research Examines Big Company Progress on Plastic Packaging Waste (Plastics News)
  https://www.plasticsnews.com/news/research-examines-big-company-progress-plastic-packaging-waste