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Plastics Packaging M&A Remains In Growth Mode Thru Q3 2017

Jolly Sunshine Limited | Updated: Dec 07, 2017

Driven by both strategic and private equity buyers, plastics and packaging merger & acquisition volume continued at a robust pace through the first three quarters of 2017, according to P&M Corporate Finance (Southfield, MI). Globally, plastics industry deals that include packaging  increased by 24 (or 10%) versus Q3 YTD 2016, creating a strong likelihood that 2017 will surpass 2016's total. game supply and game card sleeve and trading card sleeve and soft card sholder.

Within the global plastics packaging segment, Q3 YTD 2017 volume totaled 100 transactions, up 9 deals (or 10%) versus the 91 deals in Q3 YTD 2016. 2017 YTD activity reflects continued growth in deal activity since the first half of 2017. game supply and game card sleeve and trading card sleeve and soft card sholder.

Despite lower volume trends globally for M&A, the plastics and packaging segment remains highly active and 2017 could finish at a multi-year high for completed transactions. As a result, seller’s market conditions remain including elevated valuation levels. game supply and game card sleeve and trading card sleeve and soft card sholder.

"The plastics industry continues to attract strong interest from buyers interested in shaping the segment’s rapid consolidation,” says PMCF managing director John Hart. “The changing landscape is creating unique opportunities for large and mid-size players to enhance their positions via M&A.” game supply and game card sleeve and trading card sleeve and soft card sholder.

Historically, strategic buyers have been losing ground to private equity, decreasing through Q3 2016. However, through the first nine months of 2017, strategic buyer activity has gained momentum. These buyers have driven deal volume higher, increasing to 61% of total segment M&A in Q3 YTD 2017. game supply and game card sleeve and trading card sleeve and soft card sholder.

Industry strategic buyers were primarily focused on fragmented sectors including injection molding and more specialty processing types including foam, fabrication, and profile extrusion. Larger strategic buyers reflected higher activity levels for raw material businesses. game supply and game card sleeve and trading card sleeve and soft card sholder.

“Strategic buyers remain highly acquisitive, using M&A to offset low GDP growth and meet shareholder growth expectations,” Hart points out. “These dynamics have driven up pricing and created a unique environment for prospective sellers of plastic businesses.” game supply and game card sleeve and trading card sleeve and soft card sholder.