Plastics Industry M&A Activity Tracking
Global Plastics M&A activity fell in February, recording 27 deals, or 15 fewer than in January but still managed to show an increase over last year. February represented the lowest monthly plastics M&A activity since July 2023. The lower monthly activity resulted from both financial and strategic buyers producing below-average monthly deal volumes relative to the trailing 12 months. Overall, February was a lackluster month for Global Plastics M&A, but elevated monthly deal volumes experienced in January and the second half of 2023 still provide a reason for optimism for Plastics M&A in 2024.
- Strategic buyers were responsible for 16 deals, or 59% of the monthly deal volume. The 16 deals recorded in February represented the lowest monthly deal volume since September 2023 for this buyer type. The pullback in the month is attributable to private strategic buyers, which recorded nine fewer deals month-over-month
- Financial buyers recorded 11 deals in February, seven fewer than in January. Both platform and add-on buyers pulled back in the month, with each buyer type falling by three or more deals month-over-month. Notably, platform activity posted its lowest monthly volume since June 2023
- After a solid start to the year in January, deals involving two domestic parties were down in February. Seven domestic transactions were recorded in February, which was eight fewer than January levels. Furthermore, the seven deals recorded in February are four fewer than the average monthly domestic deal volume in 2023
- The Injection Molding subsector has been highly active from an M&A standpoint over the last twelve months, averaging 11 transactions per month, but the subsector cooled off in February, recording only five deals
Sources: S&P Capital IQ, Company Websites, Pitchbook, Company Reports, PMCF
Major News
- Report Says Plastics Treaty Should Ban ‘Problematic’ Products (Plastics News)
https://www.plasticsnews.com/public-policy/report-says-plastics-treaty-should-ban-problematic-products-industry-others-urge-care - EPA Sets PFAS Test for HDPE Containers, Faces New Suit in Inhance Case (Plastics News)
https://www.plasticsnews.com/news/epa-sets-pfas-test-hdpe-containers-faces-new-suit-inhance-case - Interest, But No Consensus, on Microplastics at Senate Hearing (Plastics News)
https://www.plasticsnews.com/news/microplastics-hearing-senate-draws-interest-no-consensus - Jobs Growth of 353,000 Blasts Past Expectations as Labor Market Stays Hot (The Wall Street Journal)
https://www.wsj.com/economy/jobs/jobs-report-january-today-unemployment-economy-4f3a772e?mod=jobs_more_article_pos6 - Fed Minutes Show Unease Over Premature Cuts (The Wall Street Journal)
https://www.wsj.com/economy/central-banking/federal-reserve-minutes-jan-2024-rate-cuts-25f72187
Download Plastics M&A Update – February 2024
