Dealmaking in the broader packaging industry remained muted through the first half of 2023, as the industry continued to work through the supply chain dislocation resulting from COVID-19. However, there are signs of strength heading into 2024 for packaging M&A activity.
In the M&A market, strategic buyers have been especially active, while financial sponsors have mostly remained on the sidelines given the less favorable conditions in the lending market. After consumer packaged goods (CPG) companies built up large packaging inventories amid pandemic-related supply chain disruptions, CPGs have been destocking packaging, coinciding with softer consumer demand for their products. Packaging companies, to offset this resulting lack of growth, have turned to strategic acquisitions with synergies – in several cases, through bilateral discussions outside formal bid processes.