Consumer End Market Growth Drives Heightened Packaging M&A Activity
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.