Packaging Industry M&A Activity Tracking
Global Packaging M&A posted 32 deals in July, up three transactions from June levels and up 13 from July 2023 levels. Strategic buyers continued to be active, accounting for nearly 66% of all deals in the month. Meanwhile, financial buyers posted activity in line with June levels. To date, 2024 has posted 34 more deals when compared to 2023. All subsectors have seen an increase in M&A activity relative to 2023 except for Rigid Packaging and Printing/Labels, which both only lag their prior year totals by one transaction. Encouragingly, monthly deal volume increased in each of the last four months, driving momentum heading into the second half of 2024.
- Much of the increase in deal flow from prior months is attributable to activity in the Rigid Packaging subsector, which tallied 11 deals in July compared to five in June. Machinery & Distribution also recorded strong transaction volume in July with seven deals, which was up three from last month
- Strategic buyers continued to drive packaging deal activity, accounting for 21 deals in July, which represented the highest monthly volume for this buyer group since Q4 2018. As a percentage of total deal mix, strategic buyers have accounted for 56% of transactions in the year-to-date
- Deals involving financial buyers remained steady at 11 in July. However, add-on deals accounted for eight transactions, up five from last month while platform deals dropped from eight to three
- Foreign M&A activity continued to drive performance in 2024, tallying 22 deals in July. At nearly 69% of all deal volume, Foreign deal activity represented its largest share since May 2020
- The Consumer end market observed its strongest month since January 2021 in July, accounting for 11 deals. Meanwhile, the Medical end market recorded its first month with no activity since February 2023
Sources: S&P Capital IQ, Company Websites, Pitchbook, Company Reports, PMCF
Major News
- From Pizza Box Recycling to AI: WestRock and the Future of Packaging (The Wall Street Journal)
https://deloitte.wsj.com/cio/from-pizza-box-recycling-to-ai-westrock-and-the-future-of-packaging-8b7cecac - Silgan Holdings to Buy 3i-Backed Weener Plastics in $908 Million Deal (The Wall Street Journal)
https://www.wsj.com/articles/silgan-holdings-to-buy-3i-backed-weener-plastics-in-908-million-deal-c41a7ec6 - Layoffs and Closures at Placon, Supremex, WestRock Announced in July (Packaging Dive)
https://www.packagingdive.com/news/packaging-layoffs-westrock-placon-supremex/723384/ - Costco Switches Rotisserie Chicken Container to Flexible Packaging (Plastics News)
https://www.plasticsnews.com/news/costo-chicken-switches-rigid-flexible-packaging - Congress may Consider Recyclability Labeling Law (Plastics News)
https://www.plasticsnews.com/news/key-senator-plastics-issues-working-national-recycling-labeling-law - Cost Remains Key Barrier to Sustainable Packaging, Survey Finds (Packaging Gateway)
https://www.packaging-gateway.com/news/cost-key-barrier-sustainable-packaging/
Download Packaging M&A Update – July 2024
Packaging M&A Update – September 2024
Global Packaging M&A posted 21 deals in September, down two transactions from August levels and nine from activity recorded in September 2023.
Plastics M&A Update – September 2024
Global Plastics M&A recorded 34 deals in September, which represented the fifth consecutive month of 30 or more deals and a four deal increase over September 2023 figures.
Packaging M&A Update – August 2024
Global Packaging M&A activity slowed after a strong second quarter and beginning of the third quarter, with 23 deals recorded in August—eight fewer than in July and the lowest since April.
Plastics M&A Update – August 2024
Global Plastics M&A recorded its fourth consecutive month with over 30 deals in August, tallying 33 in the period.
Plastics M&A Update – July 2024
Global Plastics M&A recorded its second most active month of the year in July, tallying 39 deals and falling three deals shy of elevated activity seen in January.