Bolstered by a strong global economy, the rising popularity of e-commerce, and an ever-increasing demand for durable, eco-friendly packaging products, deal activity in the packaging industry has remained strong over the past year. With the introduction of new technology and…
Bolstered by a strong global economy, the rising popularity of e-commerce, and an ever-increasing demand for durable, eco-friendly packaging products, deal activity in the packaging industry has remained strong over the past year. With the introduction of new technology and innovative products, as well as an increasing global focus on ethical packaging, the global packaging industry has seen an emergence of new players who emphasize minimal design and the use of recyclable plastics and other sustainable materials. The flexible packaging market is poised to grow at a CAGR of 5.5 percent from 2017 to 2023, according a study published by Research and Markets. Capstone Partners’ Q1 2018 Packaging Industry Report observes that an overall rise in disposable income and the subsequent growth within the Consumer Staples and Pharmaceutical industries is anticipated to generate a parallel increase in Packaging revenues.
In the past year, deal value in the sector has remained strong – driven by larger transaction values. It is expected that the momentum will sustain as industry players continue to seek value through vertical integration and product diversification, which implies that deal activity could remain strong through 2018 as well. Packaging deals have caught the attention of both private equity and M&A buyers. In fact, private equity has continued to dominate paper and packaging transactions through the previous year.
In this article, we list some of the recent deals that have taken place in the packaging sector.
ProAmpac acquired Bonita Packaging Products
Flexible packaging manufacturer, ProAmpac, acquired Oregon-based Bonita Packaging Products, a provider of paper packaging products. Financial terms of the transaction were not announced. ProAmpac is a portfolio company of Pritzker Group Private Capital.
Compass Group acquired Foam Fabricators
Westport, Connecticut-based Compass Diversified Holdings agreed to acquire Scottsdale, Arizona-based Foam Fabricators, Inc. for about $247.5 million. Foam Fabricators is a manufacturer of molded foam, molded EPS, molded EPP, molded EPE, molded ARCEL, e-pac, and OEM components.
AEA Investors bought Spectrum Plastics Group
Private equity firm, AEA Investors LP, acquired Spectrum Plastics Group from Kohlberg & Company, LLC. Financial terms of the transaction were not announced. Formed through the merger of Pexco and PPC Industries, Spectrum Plastics Group is a global specialty plastics manufacturer.
Wellspring Capital acquired SupplyOne
New York-based private equity firm, Wellspring Capital Management, closed the acquisition of SupplyOne Inc. Financial terms of the transaction were not announced. SupplyOne is a manufacturer and distributor of packaging solutions in the United States.
Platinum Equity bought WS Packaging Group from J.W. Childs
Platinum Equity acquired WS Packaging Group from J.W. Childs Associates. Wisconsin-based WS Packaging Group is a provider of labels and packaging solutions for the food and beverage, consumer packaged goods and pharmaceutical markets. The Company also manufactures complementary products such as label application equipment and provides services including commercial printing, foil stamping, promotional packaging and flexible packaging solutions.
If you think we missed out on naming a significant deal, feel free to leave us a comment below. To gain access to curated M&A transactions in the Packaging sector, sign up for a free trial on BankerBay.