Plastics Industry M&A Activity Tracking
Global Plastics M&A recorded its fourth consecutive month with over 30 deals in August, tallying 33 in the period. Activity remains strong compared to 2023 levels, with 252 deals completed to date in 2024, compared to 237 last year. Despite falling short of elevated July deal flow, August outpaced the year-to-date average volume of 31 by two deals. Both strategic and financial buyers displayed strong demand, accounting for 16 and 17 deals, respectively. Sustained demand in recent months, combined with improving macroeconomic conditions, brings optimism for the rest of 2024 as Global Plastics M&A shows signs of returning to the elevated activity seen in H2 2023.
- The Sheet & Thermoforming and Specialty subsectors reported strong deal activity during August, increasing by 5 and 3 deals, respectively, compared to August 2023 levels. Injection Molding has reported two consecutive months of double-digit deal activity after a sluggish first half of the year. On the year, all subsectors except Blow Molding and Resin/Color & Compounding are up compared to 2023 levels
- Financial buyers were responsible for 51% of deal volume in August, which is a slight uptick compared to 2024 trends. Platform deal activity rose by one transaction compared to last month while add-on deals fell by two
- Strategic buyers matched the yearly average volume of 16 in August and have rebounded over last years levels, helping to drive increased Global Plastics M&A activity
- Deals involving two foreign parties accounted for 16 deals during the month, or 48% of the mix. Domestic activity, which includes transactions involving a US-based buyer and seller, was not far behind with 11 deals
- All end markets remained flat or contracted from July levels, with the Industrial end market continuing to drive activity, accounting for 70% of deal flow in the month
Sources: S&P Capital IQ, Company Websites, Pitchbook, Company Reports, PMCF
Major News
- California Carpet Recovery Bill Could be Boon for Bottle-To-Bottle Recyclers (Plastics News)
https://www.plasticsnews.com/news/california-bill-could-steer-recycled-pet-bottles-away-carpet-industry - PET Recycling Effort Diverts Millions of Pounds, but Coalition Says Much Work is Ahead (Plastics News)
https://www.plasticsnews.com/news/pet-recycling-effort-diverts-millions-pounds-says-much-work-ahead - US-China Relations May Have a Big Impact on Polyethylene (Plastics News)
https://www.plasticsnews.com/one-good-resin/polyethylene-could-be-affected-us-china-relations - Biden Administration Makes U-turn on UN Global Plastic Treaty Position Ahead of US Election (Packaging Insights)
https://www.packaginginsights.com/news/biden-administration-makes-u-turn-on-un-global-plastic-treaty-position-ahead-of-us-election.html - Stable U.S. Inflation Keeps Door Open for Moderate Fed Cuts (The Wall Street Journal)
https://www.wsj.com/articles/stable-u-s-inflation-keeps-door-open-for-moderate-fed-cuts-fe652d36?mod=economy_feat1_central-banking_pos1 - US Plastics Pact Updates ‘Problematic’ Packaging List, Adds Materials for Evaluation (Plastics News)
https://www.plasticsnews.com/news/us-plastics-pact-updates-problematic-packaging-adds-materials-evaluation
Download Plastics M&A Update – August 2024