Global Plastics M&A activity was strong in 2024 with 401 transactions recorded. This activity surpassed both 2022 and 2023, despite industry sentiments indicating a slower year for plastics M&A. Unfavorable market sentiment and uncertain macroeconomic conditions dampened activity in the first half of the year, but interest rate cuts, lower inflation, and normalized demand spurred deal activity in the latter half, particularly among financial buyers.
As the Global Plastics M&A market enters 2025, questions remain about the sustainability of elevated M&A activity and if potential headwinds and uncertainty may dampen optimism, which is currently driving the sector forward.
Key trends in Global Plastics M&A in 2024 include:
- From a quarterly perspective, Q1 and Q2 each recorded close to 90 deals, aligning with pre-pandemic quarterly averages. Activity accelerated in the second half of the year, with 106 deals announced in Q3 and 115 in Q4.
- In 2024, plastics M&A activity was driven by both financial and strategic buyers, each accounting for roughly half of the total deal volume. Strategic buyer activity remained consistent throughout the year, averaging ~50 transactions per quarter. After a slower H1, financial buyer activity surged in H2, posting 114 deals in the last six months of the year, likely driven by increased stability in the financial performance of targets and some pent-up transaction volume. Notably, 2024 marked the fourth consecutive year with over 100 add-on deals, significantly above the pre-pandemic average of 77 from 2016–2019. Platform acquisitions also experienced growth, with 82 deals recorded in 2024, up 12 from 2023 levels. Financial buyer activity in the plastics sector has shown a steady upward trend since 2010, both in terms of share and volume.
- Foreign buyers and sellers’ involvement continued to play a significant role in plastics M&A during 2024, with deals involving at least one foreign party accounting for 257 transactions, or 64% of the total volume. This figure aligns with 2023 levels but exceeds those of prior years, marking a departure from the domestic-driven M&A activity seen in 2021 and 2022. Foreign transactions helped drive deal volumes in a year when plastics professionals generally felt domestic activity was lower than prior years. It should be noted that domestic activity in 2024 still outpaced 2023 levels by 13 deals.
The uptick in deal activity during the second half of 2024 reflects growing confidence in the macroeconomy and an improved environment for dealmaking. While strategic buyer activity held steady throughout the year, financial buyers drove increased activity, contributing to some of the most active quarters of M&A in recent history (Q3 and Q4). This trend is expected to continue as newly acquired platforms implement buy-and-build strategies and private equity groups continue to seek differentiated plastics companies. If current activity levels continue, 2025 will prove to be a strong year for plastics M&A.
