Packaging Industry M&A Activity Tracking
Global Packaging M&A recorded 22 deals in April 2022 down from 29 transactions in March. Average monthly deal volume through the first quarter of the year was 24 transactions which is slightly above April activity levels. The decline can be attributed to less private equity participation in the month; while strategic buyer activity has remained consistent throughout the first four months of 2022, private equity activity has fluctuated. Overall, packaging M&A has cooled down from 2021 levels but is in line with pre-pandemic volumes.
- Strategic buyers accounted for 50% of the deal volume in April which was up from 41% in March; strategic buyers have averaged 12 deals per month through the first four months of the year
- Private equity activity dipped in the month as less financial buyers executed platform transactions; private equity add-on transaction activity remained strong in the month
- Paper packaging once again led all packaging subsectors, accounting for 14 deals in the month which represented a 3 deal increase month-over-month
- The Flexible Plastic subsector continued its strong start to the year with 4 deals announced in April 2022; Flexible Plastic deal volume has increased by 2 transactions year-over-year
- Food & Beverage and Industrial transactions have led all packaging end-markets accounting for 67% of the deal volume through April
Global Packaging M&A activity appears to have returned to pre-pandemic levels through the first four months of the year. While activity has decreased from record 2021 levels, buyers and sellers continue to be motivated to close transactions in the packaging industry. 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
- Inflation Pressures Weigh on Plastics Supply Chain (Plastics Today)
https://www.plasticstoday.com/resin-pricing/inflation-pressures-weigh-plastics-supply-chain - Interest-Rate Surge Ripples Through Economy, From Homes to Car Loans (Wall Street Journal)
https://www.wsj.com/articles/interest-rate-surge-ripples-through-economy-from-homes-to-car-loans-11649426081 - States Awash in Plastic Packaging Want Manufacturers to Pay Up (Bloomberg)
https://www.bloomberg.com/news/articles/2022-04-25/states-want-plastic-producers-to-help-pay-for-landfill-and-recycling - U.S. Economy Grows Modestly Amid High Inflation, Ukraine Invasion (Wall Street Journal)
https://www.wsj.com/articles/u-s-economy-grows-moderately-amid-high-inflation-ukraine-invasion-11650480025 - Global Shipping Snarls Likely to Last for Some Time (Plastics News)
https://www.plasticsnews.com/news/global-shipping-problems-likely-last-some-time
Download Packaging M&A Update – April 2022
