PMCF’s View on the M&A Market
The Global Plastic M&A market continued to experience high levels of activity in August 2021, marking the fourth month in a row with 40 or more recorded transactions. Total transactions for the month equaled 40 deals which outpaced August 2020 by 54%, or 14 transactions. 2021 has seen active M&A participation from both strategic and financial buyers, which has put it on pace to see the most transactions in the past five years.
The Film subsector continued to see robust M&A activity in August, with 6 more transactions than August 2020 for a total of 8 deals. Film has rebounded from a down COVID year with growth over last year of 43 transactions, or over 300%. Injection Molding, which led subsectors with 10 transactions on the month, Resin, and Color & Compounding were other key contributors to growth, combined they accounted for 18 total transactions on the month. Interestingly, resin suppliers have experienced high transaction levels despite supply chain headwinds currently disrupting the subsector. Plastic subsectors have gained from increased private equity participation, with 61% of August transactions coming as a result of financial buyers. On the year, private equity buyers represent an 8% larger share of the volume mix compared to this same time last year.
August 2021 was a strong month for the Global Packaging M&A market as well with 27 total transactions in the month. All packaging subsectors increased over last year’s levels, with Flexible Plastic leading the way and outpacing 2020 levels by 5 transactions. Paper Packaging improved on an already strong 2021, totaling 11 transactions in August compared to 8 last year. On the year, Paper Packaging has increased 58% which has been driven by increased private equity participation and demand for consolidation in the industry. In August, both private equity and strategic buyers were active in the Packaging M&A market. Notably, financial add-on transactions accounted for 48% of transactions, a 27% increase over August 2020 levels.
Another strong month of M&A activity in the Plastic & Packaging sectors bodes well for the rest of year, and should this pace continue Plastic and Packaging transaction levels will surpass previous record highs. If you are a plastics or packaging 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.
Notable M&A Activity
Public Entity Performance
Major News in Plastics & Packaging
- Plastics News: Prices Heat Up for Virgin Resin in August, with Recycled Material Prices Joining the Rise
- Plastics News: Pandemic-driven Push for US-made PPE May Fade
- Plastics News: More Suppliers, Jobs for Resin Distributors in 2021
- Packaging World: 8 Packaging Trends Shaping the E-Commerce Landscape