Packaging Industry M&A Activity Tracking
Global Packaging M&A activity rebounded in June, recording 25 deals in the month. Activity level returned to normal after posting the lowest total of the year in May. Packaging transaction volumes through the first half of 2022 have not kept pace with 2021, and activity remains lower than pre-pandemic levels mainly due to weak results in February and May. The transaction activity in June was encouraging and may be a sign that the sector is picking up; PMCF is closely monitoring activity levels as we move into the second half of the year.
- Private equity platform activity remained elevated in June, posting the second consecutive month where platform deals accounted for over 15% of the total deal volume
- Paper packaging transaction levels rebounded in the month and led all subsectors, with transactions increasing by 83%, or 6 deals, when compared to May
- The Rigid Plastic packaging subsector remains on par with 2021 transaction activity recording 30 transactions through the first half of 2022
- The Flexible Plastic packaging subsector increased by 2 deals when compared to May. The subsector remains slightly under the 2021 year-to-date pace of 32 deals, with 28 deals closing in the same period of 2022
- Consumer packaging transaction levels increased substantially year-over-year; consumer deals as a share of total volume increased by 21%
Global Packaging M&A had a slow first half of the year in 2022 as deal activity through June remains behind 2019 and 2018 levels. From a quarterly perspective, Q2 posted 8 fewer deals than Q1 and both quarters posted lower levels than the average quarterly volume seen in 2018 and 2019. June monthly packaging M&A totals were encouraging and a positive sign going into the second half of the year. 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
- U.S. Economic Activity in Manufacturing Sector Grew in June (RISI Info)
https://www.risiinfo.com/ic/news/pulpandpaper/us-economic-activity-in-manufacturing-sector-grew-in-june-ism218475.html - U.S. Added 372,000 Jobs in June (Wall Street Journal)
https://www.wsj.com/articles/june-jobs-report-unemployment-rate-economy-growth-2022-11657237512 - Supply Chain ‘Scramble’ Likely to Continue into 2023 (Plastics News)
https://www.plasticsnews.com/news/supply-chain-scramble-likely-continue-2023 - Fed Raises Rates By 0.75 Percentage Point, Largest Increase Since 1994 (Wall Street Journal)
https://www.wsj.com/articles/fed-raises-rates-by-0-75-percentage-point-largest-increase-since-1994-11655316170 - California Passes Strictest Plastics Law in US, with ERP & Recycling Targets (Plastics News)
https://www.plasticsnews.com/news/california-passes-toughest-plastics-law-us-epr-and-recycling-targets
Download Packaging M&A Update – June 2022
