Annual Deal Report - Packaging

Friday 29 March 2013, Amsterdam

Deal activity in the packaging industry increased by 5% in 2012, registering 808 transactions, compared to 771 transactions in 2011. M&A transactions in 2012 registered the most deal activity, posting 518 transactions, representative of 64.1% of the total deal volume. The PE/VC activity accounted for 10.8% of the total deal volume in 2012, which was a 12.8% increase over 2011, when 78 deals were reported.

Figure 2: Quarterly Deal Volume by Deal Type, 2012
 
                                                                                           
The number of deals in the packaging sector showed an increase in 2012 in comparison to 2011. In spite of an increase in deal volume, the annual deal value decreased from US$79.1 billion in 2011 to US$77.9 billion in 2012, indicating an increase in deals in small and mid-size segments. A major share of this growth is attributed to the increasing interest of major packaging and PE/VC (Private Equity or Venture Capital) companies, to acquire small and mid-size companies operating with niche technologies and product segments. This trend is expected to continue in 2013, as the need for cost reductions, new innovations, and environmental performance remain the key focus for companies.

The industry is likely to witness higher investment in the M&A space in 2013, with a large proportion targeting small and mid-sized segments with interests in new and environmentally friendly technologies. However, high value transactions could remain minimal due to rising oil prices and insufficient capital flows.