Plastics Industry M&A Activity Tracking
Global Plastics M&A recorded its second consecutive month with over 30 deals in June, which marked a strong close to the first half of 2024 for the sector. 180 transactions were recorded in the first half of the year, which outpaced the first half of 2023 by three deals and was driven by increased activity from strategic buyers. Despite the slight increase in H1 2024 relative to H1 2023, activity will need to increase substantially to match the 205 deals recorded in the second half of 2023. Overall, transaction activity has fallen from levels witnessed in the second half of last year as company performance has stagnated and interest rates remain elevated.
- Strategic buyers were responsible for 94 deals, or 52% of deal volume in the first half of 2024, which marked higher mix levels for strategic buyers than two of the last three halves
- Financial buyers recorded 86 deals to date, slightly below 2023 first half activity levels. June saw an increase from May volumes due to an influx of platform acquisitions, which increased by eight deals compared to the prior month. In June, platform monthly activity was the highest it has been since PMCF started tracking the space
- The Industrial end market continued to lead all others in H1 2024, accounting for 71% of all deal flow and posting an increase in volume of 12 deals over H1 2023. The Medical end market saw the largest downturn in performance over the same period, falling behind H1 2023 levels by ten deals
- Domestic activity, which includes transactions involving a US-based buyer and seller, accounted for 38% of H1 2024 deal mix, which was up 9% from the mix recorded in H2 2023
- The Specialty subsector led all others in H1 2024 with 71 deals, up eight from the prior period. After posting record levels of activity in H2 2023, the Injection Molding subsector posted a decline in volume of 33 deals in H1 2024, returning to historical levels
Sources: S&P Capital IQ, Company Websites, Pitchbook, Company Reports, PMCF
Major News
- US Rejects Ban on Single-Use Plastics in Government Buying
https://www.plasticsnews.com/news/us-rejects-single-use-plastic-ban-government-buying - US Plastics Pact Releases New Road Map with 2030 Plastics Targets
https://www.packagingdive.com/news/us-plastics-pact-roadmap-update-2030-recycled-content/ - DuPont to Acquire Donatelle Plastics Incorporated
https://www.dupont.com/news/dupont-to-acquire-donatelle-plastics-incorporated.html - Dow Acquires Film Recycler Circulus as Part of Larger Circularity Push
https://www.plasticsnews.com/news/dow-acquires-film-recycler-circulus-part-larger-circular-push - Wage Gains, Low Unemployment Keep Pressure on Fed; Hiring Cooled in June
https://www.wsj.com/articles/june-jobs-report-unemployment-rate-economy-growth-2023-af4d6547
Download Plastics M&A Update – June 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.