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M&A in the Packaging Sector

M&A activity in the packaging industry has continued to accelerate in 2019 as both strategic buyers and financial sponsors aggressively pursue opportunities to consolidate the fragmented industry. The $40.9 billion of transaction value in the first half of 2018 far exceeded 2017’s record level and represents a 29.4% year-over-year increase. The median EV/EBITDA multiple for transactions completed in the first half of the year was 9.4x, well above the median of 8.3x since 2006. However, these multiples can vary substantially in relation to the final sector destination, with luxury and pharmaceutical packaging trending higher and food packaging lower. Additionally, company size plays a factor due to the fragmented industry, with smaller companies below €15 million being acquired for relatively small increases.

The packaging industry has attracted widespread interest from financial sponsors. Packaging companies’ strong cash flow generation and relatively low capital expenditure requirements, as well as the defensive nature of many end markets served by packaging suppliers, make these companies attractive assets for private equity firms looking to protect against recession in their upcoming hold periods.

CDI Global Expertise

At CDI Global, our team of senior bankers utilize decades of experience to implement and execute upon cross-border M&A, debt, and equity transactions vital to maintaining competitive positioning. Our proven transaction execution capabilities, combined with niche market and channel expertise, position CDI Global as a leading cross-border M&A advisor in the packaging industry.

CDI Global Packaging Sector Leader

  1. Cesare Tocchio (Italy)
  2. Roman Pongracz (Austria)

CDI Global Packaging Team Members

  1. Craig Dickens (USA)
  2. Daniel Boutmy (Uruguay)
  3. Eric De Geer (Vietnam)
  4. Gabriele Coccini (Italy)
  5. Jan Jarne (Brasil)

Transactions
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Sector group leaders