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Plastics packaging: M&A deals down

Last year, not surprisingly, was a slower one than previous years for mergers and acquisitions (M&A) in the packaging industry, as the difficulty in finding credit, poor broader market situation, and the rising prices (at least early in the year) for raw materials such as plastics and paper pushed down the number of deals done. All this according to the Mergers and Acquisitions in the Packaging Industry: 2008 Annual Deal Review prepared by BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group (Chicago, IL).


Doug Lawson, managing director and head of the BMO Capital Markets packaging practice, stated, “After a record setting year in 2007, the M&A environment was affected by challenging market conditions in 2008…While we expect the challenging conditions to persist in 2009, we believe that packaging industry fundamentals remain attractive over the medium-to-long term, and the strong rationale for consolidation in the packaging sector continues to exist.” According to the report, there were 252 announced transactions worldwide in 2008, a decrease of 35% from the 386 deals announced in 2007, and the lowest level in the past ten years.

The report provides a review of M&A in the packaging industry in North America as well as on a global basis over the last several years, including a look at M&A activity by sector, geography, acquirer type, size, and valuations, and provides a brief synopsis of each transaction announced during the year. Trends of the past few years also are highlighted. To request a copy of the Mergers & Acquisitions in the Packaging Industry: Annual Deal Review or to subscribe to The Converter, a monthly BMO newsletter which reports on the activities and trends shaping this industry, visit www.bmocm.com/industry/packaging or send an email to Doug Lawson at [email protected] or Laura Hubbard at [email protected].—[email protected]

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