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M&A Quarterly News In The Print and Packaging Industry Sector

By Jeff Wright | Feb 21, 2020

The report below gives a good overview of the first quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Print and Packaging sector for Q4 2019 included 36 closed deals, according to data published by industry data tracker FactSet

One of the notable middle market transactions in the sector was announced in November when Advanced Barrier Extrusions LLC, a portfolio company of Graham Partners, Inc., acquired Flexographic Packaging Co for an undisclosed amount. Since its founding in 1988, Graham Partners has focused on acquiring and investing in higher growth, middle-market consumer and industrial manufacturing-related companies. Flexographic Packaging provides flexographic printing and custom laminating services. The company was founded in 1995 and is headquartered in Waupun, WI

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M&A Quarterly News In The Print and Packaging Industry Sector

By Jeff Wright | Oct 30, 2019

The report below gives a good overview of the fourth quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Print and Packaging sector for Q3 2019 included 23 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in August when PLZ Aeroscience Corp, a portfolio company of PPC Partners Ltd., acquired Precise Packaging, Inc., a portfolio company of Trive Capital LLC, for an undisclosed amount. The transaction allows PLZ Aeroscience to enhance its position on the North American specialty aerosol and liquid manufacturing market. Precise Packaging is located in Fall River, Massachusetts and provides filling, compounding, packaging development and pharmaceutical development services.

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M&A Quarterly News In The Print and Packaging Industry Sector

By Jeff Wright | Aug 27, 2019

The report below gives a good overview of the third quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Print and Packaging sector for Q2 2019 included 29 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector closed in June when Bio Pappel International, Inc., a subsidiary of Bio-PAPPEL SAB de CV, acquired a 55% majority stake in US Corrugated, Inc. for an undisclosed amount. The transaction would allow Bio Pappel International to double its operations in United States, and also expands opportunities, product and service offerings. US Corrugated is located in Washington, Pennsylvania and manufactures corrugated packaging products.

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M&A Quarterly News In The Print and Packaging Industry Sector

By Jeff Wright | May 15, 2019

The report below gives a good overview of the second quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Print and Packaging sector for Q1 2019 included 34 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when MC Sign LLC, a subsidiary of Arcapita Bank BSC, which is ultimately owned by Arcapita Group Holdings Ltd, acquired Coastal Signage + Wayfinding, Inc. for an undisclosed amount. The transaction enhances MC Sign’s portfolio of service offerings and it is in line with the growth strategy of MC Sign. Coastal Signage + Wayfinding is located in Oceanside, California and manufactures signs.

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M&A Quarterly News In The Print and Packaging Industry Sector

By Jeff Wright | Feb 27, 2019

The report below gives a good overview of the first quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Print and Packaging sector for Q4 2018 included 28 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in December when New-Indy Catawba LLC, a subsidiary of New-Indy Containerboard LLC, itself a joint venture between Schwarz Partners LP and The Kraft Group LLC, acquired the business and assets related to the Paper & Pulp Mill division from Resolute FP US, Inc., a subsidiary of Resolute Forest Products, Inc. for US$260 million in cash and US$40 million in assumed liabilities, subject to customary closing adjustments. The acquisition would complement the containerboard manufacturing business of New-Indy Containerboard LLC. The assets and business related to the Paper & Pulp mill business of Resolute Forest Products Inc is located in Catawba, South Carolina.

Industry Indicators

  • US corporate profits, an indicator for corporate demand for printing services, rose 10.3% in the third quarter of 2018 compared to the same period in 2017.
  • US nondurable goods manufacturers’ shipments of printed goods, an indicator of demand for commercial printing, rose 1.3% year-to-date in October 2018 compared to the same period in 2017.
  • The spot price of crude oil, a key cost factor in commercial printing operations, fell 19.7% in the week ending January 11, 2019, compared to the same week in 2018.

Posted by Jeff Wright.

Read the Entire Print and Packaging 1st Quarter Newsletter Here


M&A News In The Print and Packaging Industry Sector

By Jeff Wright | Nov 19, 2018

The report below gives a good overview of the fourth quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Print and Packaging sector for Q3 2018 included 25 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in July when Ahlstrom-Munksjö Oyj acquired Expera Specialty Solutions, LLC from KPS Capital Partners LP for US$615 million in cash, subject to an agreed post completion adjustment. The transaction would allow Ahlstrom-Munksjö Oyj to expand its operations in North America and strengthens its services offerings. Founded in 2013, Expera Specialty Solutions is located in Kaukauna, Wisconsin and manufactures and converts lightweight packaging, pressure sensitive and industrial papers.

Board and paperboard (corrugated, folding carton stock and liquid paperboard) is the largest packaging material type according to a recent study conducted by Smithers Pira. It accounts for 35.7% of world packaging consumption followed by flexible packaging (plastic, paper and foil) with 23.3%, rigid plastic packaging with 18.2% and metal with 12.2%.

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M&A News In The Print and Packaging Industry Sector

By Jeff Wright | Aug 16, 2018

The report below gives a good overview of the third Quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Print and Packaging sector for Q2 2018 included 21 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in May when R2G Rohan Czech Sro, a subsidiary of R2G Rohan SARL, acquired First Quality Nonwovens, Inc. from First Quality Enterprises for US$500 million. R2G Rohan Czech Sro, part of R2G Rohan SARL, is a Czech company that operates as an investment company. First Quality Nonwovens is an American company located in Hazle Township, PA, that manufactures and markets sanitary paper and spun melt nonwovens.

The price of pulp, paper and other allied products flattened out in the second quarter benefitting manufacturers who’d faced steady price increases since July of 2017.

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M&A News In The Print and Packaging Industry Sector

By Jeff Wright | May 24, 2018

The report below gives a good overview of the second Quarter M&A activity in the Print and Packaging Industry Sector. M&A activity for North American based target companies in the Packaging and Printing sector for Q1 2018 included 15 closed deals, according to data published by industry data tracker FactSet.

One of the notable transactions announced in the quarter was ProAmpac, one of the nation’s largest and fastest-growing flexible packaging manufacturers, acquiring Pactech Packaging (Pactech), a Rochester, New York-based manufacturer specializing in pouch converting. Pactech’s products complement ProAmpac’s existing flexible packaging offerings, which primarily serve the medical, industrial and consumer packaged goods markets. Financial terms of the deal were not disclosed.

According to data from industry group Smithers Pira, the global flexible packaging market is growing 3.5% annually and generates more than $230 billion annually.

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Avoid the Hazards of Single Suitor Negotiation

By Jeff Wright | Jun 20, 2017

Here is an issue we see all the time. A company owner gets an attractive “offer” lobbed over the transom. He’s flattered, intrigued. He’s been thinking of scaling back, maybe even selling the business and this top dollar overture has his attention. He starts to invest in the possibility and decides there is no harm in taking a meeting. This sounds like a path to a big payday and happy outcome. Right? Well, probably not.

There is a saying in our business that “one buyer is no buyer.” And while that’s a bit black and white, it does reflect the importance that we as M&A Advisors place on having multiple buyers and competition.

Back to our company owner. He meets with this suitor. He shares financials and other information. He’s getting hooked into a process and invested in an outcome. The potential buyer asks for an exclusivity period. They ask for more and more information. Our seller has now invested significant time and psychic energy in this process. The buyer finds some dings in the business and begins to adjust the price (really, downward is the only direction the price goes in situations like this). Even after many months of this cycle of information requests and price reduction, our owner is reluctant to give up, given all work and hope he has into this. Most of the leverage is with the buyer, little with the seller.

Oh, the owner has also taken his eye off the business and performance is slipping.

In our experience, most situations like this never close, waste a lot of time and may even taint the company for future sale opportunities. We believe that receiving an attractive “offer” is the perfect time for an owner to take a step back and get some professional help. Strategic and financial buyers know how to buy companies. They have teams of experts. They love the opportunity to scoop up acquisitions without competition. The playing field is lopsided in their favor as most company owners have never sold a business and when they do, it will be a “first time/last time transaction involving their biggest asset.

At CFA, our mission is to work with company owners to see that they are fairly paid for their lifetime of work, the value they have created and the risks they have taken. Hiring CFA does several things to advance this cause.

  • We bring competition to the table. With our contacts and research, we can invariably find multiple qualified buyers that will be competitive on price and terms, and do so confidentially.
  • We create a sense of urgency, keeping all buyers on a tight timeline simultaneously throughout the process.
  • The owner can focus on the company’s performance as we manage the process and interactions with buyers.
  • Valuation can be driven UP, because we don’t put a price on the company. We let the buyers do that, and drive up valuation in an auction with each other.
  • Owners have an M&A expert on their side to help structure an advantageous transaction and navigate the numerous deal traps in the definitive agreements (escrows, indemnities, working capital adjustments, consulting agreements, earn-outs, etc.)

Buyers are particularly aggressive right now, with trillions of dollars to deploy and a limited supply of sellers in the market. Buyers are contacting owners directly more than ever with enticing “offers.” We advise owners to use this sellers’ market to their advantage and hire an M&A expert to help them achieve a high value and expeditious transaction.


Does Industry Expertise Matter When Selecting an Investment Banker?

By Jeff Wright | Mar 04, 2015

Investment BankerSometimes a company owner insists that an investment banker must be an “industry expert” to maximize value. To the contrary, my experience leads me to believe that the real benefits of specific category experience may be small and the potential pitfalls, larger.

It may seem counterintuitive, but being narrowly focused in an industry may actually be a detriment to owners seeking to sell their companies for maximum value. Here are some reasons this might be so:

  1. An “industry expert” may approach the assignment just like his last deal and not apply innovative thinking to the assignment. There is a risk of “phoning in the work”. We know that every company and every situation is different and deserves fresh thinking.
  2. The “industry expert” may see a limited buyer universe because he thinks he already knows all the buyers in the industry. This kind of banker may not dig as deep or think as creatively to find buyers who may have strategic adjacencies, because they are not directly in the client’s industry.
  3. Worse, due to long standing relationships, the banker may owe favors to certain buyers in that industry and lose some objectivity, maybe even unintentionally.

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