Industry Updates

Packaging M&A Update – January 2023

Packaging Industry M&A Activity Tracking

Global Packaging M&A began the year on a high note recording 25 deals in January, which represents a month-over-month increase of six deals. Deal activity in the month was primarily driven by private equity add-on transactions, which accounted for 13 deals. After historic levels of transaction activity in 2021, Packaging M&A over the past year has been hampered by macroeconomic uncertainty and rising interest rates, but January deal activity rose above the average monthly volume from 2022 and was a welcome uptick in deal activity.

Private equity platform transactions continued to be lower in January 2023, given challenging credit markets. Meanwhile, private equity add-on activity remained strong, accounting for 52% of deal volume
Strategic volume was down one transaction in the month relative to January 2022. Strategic buyers remained on pace with the average monthly volume seen in H2 2022
Paper Packaging transactions led all Packaging subsectors, accounting for 12 deals in the month. January’s transaction volume represents the subsector’s best month since last July
Rigid Plastic transactions accounted for six deals on the month, which was above the subsector’s monthly average of four in 2022
The Consumer end market accounted for 14 deals in the month and led all end markets. Deal activity for the end market in January matched the 2022 high and represented a month-over-month increase of seven deals

Overall, Global Packaging M&A transaction activity posted a strong month when compared to the second half of 2022. Notably, the current level of packaging deal volumes is in line with pre-pandemic levels. It remains too early to tell if January levels will continue in the first half 2023. If you are a packaging company considering a merger, acquisition, sale, or recapitalization in the short or long 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 January 31, 2023