North American plastic packaging industry M & A inventory in the first half of 2018
release date: Source: China Plastics browse times: 2422 copyright and disclaimer
core tip: the M & A activities in the plastic industry, especially in the plastic packaging industry, continued rapidly in the first half of 2018, as evidenced by some recent transactions of major participants and an industry report
[China Packaging News] M & A activities in the plastic industry, especially in the plastic packaging industry, continued rapidly in the first half of 2018, as evidenced by some recent transactions of major participants and an industry report
the largest recent transaction was Amcor's acquisition of Bemis with us $6.8 billion of all shares in Melbourne, Australia, which enabled Amcor to further enter the plastic packaging market in North America. Bemis has strong strength in the hot forming field of coiled material plates for food, health packaging, CPET, APET, PP and hips. You can learn more by reading the previous report of China Plastics "before Amcor's acquisition and use of Bemis, a giant in the plastic flexible packaging industry will be born"
also last week, Graham partners (Philadelphia, Pennsylvania) announced its third recent investment in thermoforming packaging, acquiring nuconic packaging LLC (Vernon, California). The investment was completed within less than one year after the acquisition of tray Pak Corp. and easypak LLC. Graham partners said that this is an attractive niche market, thanks to consumers' choice of sustainable packaging and growing demand for fresh ready to eat food
Sonoco products (located in Hartsville, South Carolina) said in a statement on April 12, 2018 that the company has completed the acquisition of highland packaging solutions (located in plante, Florida). Highland packaging solutions is a company that produces thermoformed packaging for fresh fruits, vegetables and eggs, which can be seen everywhere in fast-growing retail supermarkets. Schneider purchased the privately owned highland packaging company with about US $150million in cash
previously, highland was owned by Steve Maxwell and John Durham. It grew from a regional supplier of agricultural packaging products to a global packaging company, with a net sales of about $90million in 2017
strong performance in M & A of medical plastics and plastic packaging
according to the latest data of the plastic and packaging industry in the first half of 2018 recently released by stout, the M & A of medical plastics and plastic packaging led the market demand in this period, increasing by 28% and 11% respectively. The key points include tools and molds (35%), thermoforming (15%), machinery trading (thus casting football to improve the flight arc by 10%), both of which have increased year-on-year
the total volume of plastic transactions involving mixed buyers (strategic buyers owned by private equity companies as interior parts makers) increased significantly, with a year-on-year increase of 45%. Stout pointed out that overall, M & A transactions in the global plastics industry decreased by 7% year-on-year in the first half of 2018, mainly due to the decrease in industrial plastics transactions and the decrease in M & A transactions in three key plastic processing fields: injection molding, extrusion and resin/composite. Stout said that most of the declines occurred in the first quarter, with a total trading volume of 96, while the second quarter rebounded to 108, more consistent with the previous 10 quarters
thermoforming seems to be a very attractive industry area, driving some M & A transactions. David evatz, managing director of stout and author of the report, said that "from the perspective of transaction volume", injection molding is larger than thermoforming. In clarifying the comments in the report, evatz said that the number of thermoforming transactions has increased, but it is still "a small subset in the processing field"
evatz said that in general, injection molding accounted for about one third of the transactions, followed by various types of extrusion (sheet, profile, pipe, etc.), and resin and composite companies ranked third. "Then, in other process areas where there is not much trading, this ratio will decline," he said "However, due to several factors, we have seen an increase in thermoforming. When large parts are involved, thermoforming is an alternative to injection molding. There are also a large number of thermoforming packaging transactions in the growing market, such as clean cooked food containers."
"the thermoforming field has two parts: packaging and large part thermoforming. We have seen an increase in transactions in both parts." Evatz said
in November, 2013, medical plastics and plastic packaging m & A activities showed strong demand for medical plastics business, while plastic packaging m & A activities continued the positive momentum in 2017
"generally speaking," evatz said, "in the past three years, the M & a market in the plastic industry has been very strong - about 100 transactions per quarter - which is consistent both in the United States and internationally. There is a great demand for companies, which is the role of the economy. The macro economy is quite positive, so it is expected that such M & A activities will continue until this year and possibly 2019."