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A busy year ahead for packaging M&As
Packaging mergers and acquisitions were fast and frequent in 2007, and this year looks to be just about as busy.
Chicago-based Mesirow Financial reports a total of 367 M&As in the packaging industry in 2007, valued at $32.8 billion. And the impact of private-equity buyers continues to grow with 54% of all deals last year being "financial" ones completed by these groups rather than "strategic" deals between one packaging converter and another. Piper Jaffray & Co. in Minneapolis tallied similar stats and concurs on the influence of private-equity investment in the packaging field.
So, what's ahead?
1. There will probably be some fall off in total M&A activity in 2008, but strategic acquirers will still be very active, says Mesirow managing director William J. Hornell.
2. Most deal volume this year will fall into the middle-market range for low-volume, niche-product converters versus the high-volume, low-cost guys, says PJ&Co.
As has been the case for the past several years now, it seems clear that industry consolidation will "keep on keepin' on." So, looking to sell out and retire, or maybe your company needs a strong infusion of capital to really grow and prosper? The best flags to wave at buyers may just be your "Here's what I can do for you" and your "Unique products made only here" banners.
A busy year ahead for packaging M&As
January 24, 2008
Packaging mergers and acquisitions were fast and frequent in 2007, and this year looks to be just about as busy.Chicago-based Mesirow Financial reports a total of 367 M&As in the packaging industry in 2007, valued at $32.8 billion. And the impact of private-equity buyers continues to grow with 54% of all deals last year being "financial" ones completed by these groups rather than "strategic" deals between one packaging converter and another. Piper Jaffray & Co. in Minneapolis tallied similar stats and concurs on the influence of private-equity investment in the packaging field.
So, what's ahead?
1. There will probably be some fall off in total M&A activity in 2008, but strategic acquirers will still be very active, says Mesirow managing director William J. Hornell.
2. Most deal volume this year will fall into the middle-market range for low-volume, niche-product converters versus the high-volume, low-cost guys, says PJ&Co.
As has been the case for the past several years now, it seems clear that industry consolidation will "keep on keepin' on." So, looking to sell out and retire, or maybe your company needs a strong infusion of capital to really grow and prosper? The best flags to wave at buyers may just be your "Here's what I can do for you" and your "Unique products made only here" banners.
Posted by Mark Spaulding on January 24, 2008 | Comments (1)
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