blank
  • About Us
    • Careers
  • M&A Services
    • Buy Side Advisory
    • Capital Raising
    • Sell Side Advisory
    • Transaction Planning & Readiness Review
  • Industry Expertise
    • Business Services & Technology
    • Consumer, Food & Retail
    • Healthcare
    • Industrials
    • Plastics & Packaging
  • Transactions
  • Team
  • News & Insights
    • Events
    • Industry Updates
    • News
    • Perspectives
Menu
  • About Us
    • Careers
  • M&A Services
    • Buy Side Advisory
    • Capital Raising
    • Sell Side Advisory
    • Transaction Planning & Readiness Review
  • Industry Expertise
    • Business Services & Technology
    • Consumer, Food & Retail
    • Healthcare
    • Industrials
    • Plastics & Packaging
  • Transactions
  • Team
  • News & Insights
    • Events
    • Industry Updates
    • News
    • Perspectives
Contact

Industry Updates

  • Back to News & Insights

Plastics & Packaging M&A Update – August 2020

  • September 23, 2020
  • Industry Updates
  • Plastics & Packaging
Share on facebook
Share on twitter
Share on linkedin

PMCF Industry M&A Activity Tracking

Global Plastics & Packaging transaction activity experienced further recovery from COVID in August 2020 with both sectors reporting modest increases in activity over July levels.

Global Plastics M&A recorded 26 transactions which was higher than last month by 2 transactions but still behind last year’s YTD total by 6 transactions. Injection Molding was the most active subsector in August, representing more than 40% of plastics transaction activity for the month with notable transactions involving both medical and industrial molders. Resin, Color & Compounding also had another strong month and continues to outperform last year by a meaningful margin. Transactions involving a buyer with a strategic angle (strategic and private equity add-on) continue to represent the majority of plastics transactions with the number of transactions in these buyer categories tracking similar to last year for the month of August. Private equity platforms continue to lag last year which is likely due to the reliance upon bank financing and shorter-term financial results to meet sellers’ valuation expectations.

Global Packaging M&A reported its first monthly increase over last year since March 2020 with 19 transactions compared to 18 transactions in August 2019. Distribution across the subsectors was similar to last year and Paper continues to be the strongest performing subsector on a year-to-date basis. Other packaging (which includes machinery/equipment, metal, distribution, and glass packaging) had a particularly strong month driven by 3 notable packaging distribution transactions. The buyer makeup for packaging was heavily weighted towards strategic buyers which increased by 5 transactions, or 50% for the month. Private equity add-ons declined by 2 transactions and there were no recorded private equity platform transactions for the month, which is highly unusual even in this COVID environment.

Overall, the environment for plastics and packaging M&A continues to improve but is still not fully recovered from COVID. We don’t expect full recovery for quite some time but have been encouraged by the level of activity over the last few months and the notable transactions. Multiples being paid for high quality plastics and packaging businesses continue to be strong based on the transactions we’ve seen with the COVID impact on the business being a critical factor. If you are a plastics and packaging company considering a sale or recapitalization in the short or longer term, please consider leveraging PMCF’s transaction planning and execution expertise to best position your company for a transaction.

 

Notable M&A Activity

blank

Public Entity Performance

blank

Major News in Plastics & Packaging

  • Fastmarkets RISI: Pactiv Evergreen Inc. (currently Reynolds Group Holdings) files for proposed IPO
    • https://www.risiinfo.com/ic/news/pulpandpaper/pactiv-evergreen-inc-currently-reynolds-group-holdings-files-for-proposed-ipo-197061.html
  • Plastics News: Commodity resin prices up in August, hurricane impact unclear for September
    • https://www.plasticsnews.com/news/commodity-resin-prices-august-hurricane-impact-unclear-september
  • Packaging Digest: Flexible Packaging Delivers in the Ecommerce Era
    • https://www.packagingdigest.com/flexible-packaging/flexible-packaging-delivers-ecommerce-era
  • The Guardian: ‘It’s all on hold’: how Covid-19 derailed the fight against plastic waste
    • https://www.theguardian.com/environment/2020/jul/09/covid-19-plastic-bans-california-new-york

 

PMCF-Monthly-Newsletter-Plastics-Packaging-2020-08

File size: 0.99 MB
Download Preview

Stay Informed

Subscribe to our newsletter for the latest industry updates

Subscribe

Recent Publications

Plastics & Packaging M&A Update – November 2020
Industrial Distributor M&A Pulse – Q3 2020
Food & Beverage M&A Pulse – Q3 2020
Plastics & Packaging M&A Update – October 2020
Medical Technology M&A Pulse – Q3 2020
Contact
blank

Follow Us On

Securities offered through P&M Corporate Finance, LLC. Member of FINRA and SIPC.

blank
Cfi Logo White 94x94 On About

Home

  • About
  • Team
  • Careers

M&A Services

  • Buy Side Advisory
  • Capital Raising
  • Sell Side Advisory
  • Transaction Planning & Readiness Review

Industry Expertise

  • Business Services & Technology
  • Consumer, Food & Retail
  • Healthcare
  • Industrials
  • Plastics & Packaging

News & Insights

  • Transactions
  • News
  • Industry Updates
  • Perspectives
  • Events

©2020 PMCF

  • Member SIPC​
  • Member FINRA
  • FINRA Broker Check
  • Business Continuity Plan​
  • Disclaimer​
  • Privacy Policy​
Cookie Notice: This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our Privacy Policy for more information on the cookies we use.AgreePrivacy policy