Plastics Industry M&A Activity Tracking
December 2021 marked the end of a record year for Global Plastics M&A. Deal volume on the year was the highest it has been since PMCF began tracking the industry about 15 years ago. Total transactions amounted to 52 in the month and 485 in the year which is a substantial increase from 2020 levels of 37 and 285, respectively. Robust deal volumes were driven by carryover transactions from 2020, sellers’ concerns over the tax environment, favorable market conditions for buyers, and strong transaction valuations for sellers.
- Private equity firms were responsible for 42% of the deal volume in December up from 38% in December 2020
- On the year, financial buyer plastics transactions doubled over 2020 levels with platform transactions increasing by 113%
- Sheet & Thermoforming, Resin / Color & Compounding, and Specialty transactions all increased by significant levels, combining to account for 75% of transactions in the month
- Film transactions decreased by over 50% for the month but still reported a record number of transactions for the year
- Industrial end market outpaced all end markets with 33 transactions, or 63% of deal volume and accounts for almost 40% of the growth in plastics transactions for the year
- Food & Beverage and Automotive end markets finished the year strong, more than doubling 2020 levels
Overall, Global Plastics M&A transaction volume notched a record year in 2021. Given the unique dynamics driving 2021 to record levels, PMCF does not expect M&A volume to continue at the same levels in 2022 but does expect robust activity levels similar to those experienced prior to the COVID-19 pandemic. If you are a plastics 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.
Plastics M&A By Subsector
Total Plastics M&A By End Market
Plastics Transactions By Buyer Type
Notable M&A Activity
Public Entity Performance
Major News
- The Supply-Chain Crunch Is Like a Traffic Jam. Allow Us to Explain. (Wall Street Journal)
https://www.wsj.com/articles/the-supply-chain-crunch-is-like-a-traffic-jam-allow-us-to-explain-11640786401?mod=Searchresults_pos2&page=10 - Wages Trending Up for Plastics, Rubber Processors (Plastics News)
https://www.plasticsnews.com/news/wages-trending-plastics-rubber-processors - Supply Chain Crisis Shifts Power Balance Between Automakers, Suppliers (Plastics News)
https://www.plasticsnews.com/news/supply-chain-crisis-shifts-power-balance-between-automakers-suppliers - Omicron Variant Is Expected to Dent Global Economy in Early 2022 (Wall Street Journal)
https://www.wsj.com/articles/omicron-variant-is-expected-to-dent-global-economy-in-early-2022-11640631554?mod=Searchresults_pos16&page=16 - PP, PE Prices Take a Fall in December (Plastics News)
https://www.plasticsnews.com/news/polypropylene-polyethylene-prices-fall-december
