Capstone Partners, a middle market investment banking firm, released its October 2021 Packaging Industry Update, reporting that merger and acquisition (M&A) activity has continued at a strong pace following record transaction volume in 2020 as strategic and private equity (PE)-backed buyers have consolidated competitors to gain exposure to defensible end markets, increase market share and expand product portfolios.
Capstone expects packaging providers to continue to see strong demand driven by the adoption of online shopping, rising per capita income and climbing industrial production. Packaging and labeling providers serving attractive end markets, providing technology-enabled products or developing sustainable solutions are expected to continue to attract buyer interest and fetch premium valuations.
"The demand for strong performing packaging assets in the M&A market has accelerated in 2021. Historical tailwinds in this industry, such as e-commerce, sustainability and smart packaging technology have been amplified as companies navigate changing consumer shopping habits and supply chain disruptions. This heightened demand is translating into the M&A markets for both strategic and financial acquirers," says Capstone managing director David Bench, the lead contributor in the newly released report.
Also included in this report:
- Why large public packaging companies have reported strong results in Q2 despite rising raw material prices
- How elevated consumer awareness surrounding sustainability, increasingly stringent environmental regulations, and rising corporate environmental, social and governance (ESG) interest are impacting the industry
- A buyer spotlight providing a company overview of B2B Industrial Packaging, a business-to-business (B2B) packaging provider and active acquirer in the space
Visit www.capstonepartners.com to access the full report.
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