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Global packaging M&A activity reduced in the first quarter of 2019, registering approximately USD 802 billion in transactions. Overall transaction value decreased by 15 percent through Q1 2019 compared to the same time period of the previous year. According to…

Global packaging M&A activity reduced in the first quarter of 2019, registering approximately USD 802 billion in transactions. Overall transaction value decreased by 15 percent through Q1 2019 compared to the same time period of the previous year. According to EY’s 2019 Packaging Recap, this decrease can be attributed to the stark reduction in the number of megadeals in this quarter. Strategic buyers accounted for 66.5 percent of transaction volume, according to Capstone Headwaters, while private equity firms continued to seek add-on acquisitions, contributing to about 26 percent of transaction activity.

Packaging M&A activity continues to be driven by the consolidation of a largely fragmented industry, growth tailwinds due to eCommerce, and changing consumption trends in food & beverage and personal care markets.

 

Notable transactions this year :

Berry Global Group acquired RPC Group

Berry Global International Holdings Limited announced the completion of its acquisition of RPC Group Plc for a purchase price of approximately USD 6.5 billion. Berry is a global supplier of rigid, flexible, and non-woven packaging products that are used in both consumer and industrial end markets. Based in the United Kingdom, The Packaging segment of RPC designs plastic packaging for end markets, including food, beverage, personal care, and healthcare markets. The deal is expected to raise net sales to approximately USD 13 billion.

Sealed Air Corporation acquired MGM’s flexible packaging business

Sealed Air Corp., a manufacturer and seller of packaging materials and equipment solutions, expanded its footprint in Southeast Asia with its acquisition of MGM’s flexible packaging business. MGM is a privately held company headquartered in Manila, the Philippines. The company specializes in printing and laminating and is a provider of flexible food packaging materials for the packaged goods market in Southeast Asia. The company also exports to companies in Australia, Brunei Darussalam, and New Zealand.

Centerbridge Partners acquired Solidus Solutions

Aurelius Equity Opportunities agreed to sell its subsidiary Solidus Solutions to funds advised by Centerbridge Partners for an enterprise value of approximately EUR 330 million. Solidus is a European producer of sustainable fibre-based packaging solutions for food, beverage & horticulture, consumer goods and industrial applications. Aurelius acquired Solidus in 2015 as a carve out from listed Smurfit Kappa Group.

Amcor acquired Bemis Co.

Amcor, a manufacturer of flexible packaging products, specialty cartons, and plastic bottles and jars, completed the acquisition of Bemis Company, Inc. Based in Wisconsin, United States, Bemis is a manufacturer of plastic packaging products for applications such as food, medical, agribusiness, pharmaceutical, and personal care.

Liqui-Box acquired DS Smith’s plastics division

Liqui-Box Corporation, a manufacturer of liquid packaging products such as plastic bags, plastic blow molded containers, and injection molded plastic products, purchased DS Smith plc’s Plastics Division. The acquisition of DS Smith Plastics, which includes the Rapak and Worldwide Dispenser businesses, will further expand the product portfolio and manufacturing footprint of Liqui-Box.

 

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