Plastics M&A Update – May 2025

Plastics Industry M&A Activity Tracking

Global Plastics M&A activity slowed in May, marking the lowest monthly total since April 2024, with deal volume down by four transactions compared to the prior month. The decline reflects ongoing uncertainty around broader macroeconomic conditions related to recent tariff announcements. Still, 2025 activity remains strong, with 169 deals announced year-to-date, a 20-deal increase over the same period in 2024. Strategic buyers drove the majority of deal flow during the month, a departure from year-to-date trends where buyer activity has been more balanced. Despite the monthly pullback, the market remains resilient heading into the second half of the year.

• Following a hot start to the year, the Injection Molding subsector experienced its fourth consecutive monthly decline in activity, posting six deals during May. Film activity tapered in May, marking a decline of four deals from prior month levels with only two deals announced for the subsector
• Financial buyers posted 13 transactions for the month, representing a six deal decrease month-over-month. Generally financial buyers continue to be active in the plastic space, combining for 82 deals through the first five months of the year, a 14-deal increase over the same period in 2024
• Foreign buyers and sellers drove activity in the month, accounting for 16 transactions in the month. Domestic M&A continued its multi-month slowdown but remained in line with prior year trends, totaling 12 deals in May which matched the average monthly volume from 2024
• Only one deal was announced in the Medical end market in May, the lowest monthly activity seen this year. Prior to this decline in activity, four or more deals attributable to this end market were announced each month of 2025

Sources: S&P Capital IQ, Company Websites, Pitchbook, Company Reports, PMCF

Major News​

• Europe Prepares to Counter US Tariffs (Plastics News)
  https://www.plasticsnews.com/news/europe-prepares-counter-us-tariffs
• Texas Bottle Bill Plan Has Bipartisan Support, PET Industry Backing (Plastics News)
  https://www.plasticsnews.com/news/texas-bottle-bill-plan-has-bipartisan-support-pet-industry-backing
• EU Greenlights Adnoc’s $16.3B Takeover of Covestro (PlasticsToday)
  https://www.plasticstoday.com/business/eu-greenlights-adnoc-s-16-3-billion-takeover-of-covestro
• PLASTICS Applauds Passage of U.S. House Tax Bill, Delivering Hard-Fought Victories for Industry (Plastics Industry Association)
  https://www.plasticsindustry.org/newsroom/plastics-applauds-passage-of-u-s-house-tax-bill-delivering-hard-fought-victories-for-industry/
• The Fed’s Targeted Inflation Rate Eased in April (The Wall Street Journal)
  https://www.wsj.com/economy/the-feds-targeted-inflation-rate-eased-in-april-b1c3754c?mod=central-banking_more_article_pos2
• Employers Added 177,000 Jobs in April Despite Tariff Uncertainty (The Wall Street Journal)
  https://www.wsj.com/economy/jobs/jobs-report-april-2025-unemployment-economy-6ad2bdac?mod=economy_feat5_jobs_pos5