Packaging M&A Update – August 2022

Packaging Industry M&A Activity Tracking

Global Packaging M&A activity recorded 22 deals in August which was one transaction lower than July levels. Deal activity in August was driven by private equity add-on acquisitions, which accounted for 12 transactions in the period. Overall, Packaging M&A activity has been down in 2022 from a volume standpoint falling below pre-pandemic levels on a year-to-date basis. Despite lower volumes, buyers and sellers remain active and deals continue to close at attractive transaction multiples.

• The Industrial end market recorded its best month of the year in August, accounting for 10 deals, which is up four deals from July levels. Throughout the year-to-date, the Industrial end market has accounted for 32% of all transaction activity
• Paper packaging led all subsectors for the third consecutive month, recording nine transactions in August. Over the 2022 year-to-date period, Paper packaging deals have accounted for 47% of all deal activity
• Flexible Plastic packaging rebounded in August, accounting for eight deals in the month which marked the highest level of monthly activity in the year-to-date
• Private equity add-on acquisitions accounted for 54% of transaction activity in the month as financial buyers proved to be highly acquisitive in August
• Rigid Plastic packaging increased by one deal month-over-month and continued the year-to-date trend of elevated M&A activity

Global Packaging M&A recorded its third straight month with over 20 deals, however, overall activity remains down in the year. Despite lower activity, strategic and financial buyers continue to be acquisitive and deal valuations remain strong. 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, 2022

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

• California Lawmakers Kill Plan to Cut Plastic Packaging in Online Shopping (Plastics News)
  https://www.plasticsnews.com/public-policy/california-bill-plastic-packaging-e-commerce-shopping-killed
• Job Market Stronger Than Previously Reported, Data Show (Wall Street Journal)
  https://www.wsj.com/articles/job-market-stronger-than-previously-reported-data-show-11661364957?mod=Searchresults_pos17&page=4
• A Different Take on the US Economy: Maybe It Isn’t Really Shrinking (Wall Street Journal)
  https://www.wsj.com/articles/a-different-take-on-the-u-s-economy-maybe-it-isnt-really-shrinking-11661696041?mod=Searchresults_pos3&page=1
• More Volatility for North American PS, ABS resin prices (Plastics News)
  https://www.plasticsnews.com/resin-pricing/polystyrene-resin-prices-abs-resin-prices-chaos-over-feedstocks
• FPA Publishes 2022 State of the Flexible Packaging Industry Report (Packaging World)
  https://www.packworld.com/news/sustainability/news/22418780/flexible-packaging-association-fpa-publishes-2022-state-of-the-flexible-packaging-industry-report

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