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Archive for the ‘Print/Packaging’ Category

M&A News In The Print and Packaging Industry Sector

By Anthony Contaldo | Oct 12, 2017

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 Printing and Packaging sector for Q2 2017 included 29 closed deals, according to data published by industry data tracker FactSet.
One of the largest deals of the quarter closed in May when Leonard Green & Partners LP, a subsidiary of LGP Management, Inc., acquired Charter NEX Films, Inc. from Pamplona Capital Management LLP for US$1.5 billion, including debt. Based in Milton, Wisconsin, USA, Charter NEX Films manufactures specialty polyethylene film for food and consumer packaging, and for industrial and medical applications.

Growing economies in developing nations combined with an ageing population are driving increased demand for more convenient, easy-to-carry, light, safe and functional packaging, which has led to increased sector sales.

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M&A News | Print & Packaging Industry

By Anthony Contaldo | Mar 30, 2017

Print & Packaging IndustryOne of the largest deals of the Print & Packaging Industry in the 4th quarter of 2016 took place in November when Ocelot Acquisition, Inc., a newly formed joint venture of CVC Capital Partners Ltd and BA Glass BV, agreed to acquire Anchor Glass Container Corp, a portfolio company of KPS Capital Partners LP and AlpInvest Partners BV for more than US$1 billion in cash. Anchor Glass Container, based in Tampa, Florida, manufactures glass containers. It offers beer, beverage, liquor, food and custom mold making products and services. Read more »


Print & Packaging M&A News Update

By Anthony Contaldo | Jan 06, 2017
Print & PackagingM&A activity for North American based target companies in the Print & Packaging sector for Q3 2016 included 54 closed deals, according to data published by industry data tracker FactSet.  The average transaction value was $401 million.
A transaction of note announced early in the quarter was Packaging Corporation of America (NYSE: PKG) announcing that it has entered into a definitive agreement to acquire substantially all of the assets of TimBar Corporation, a large independent corrugated products producer, in a cash-free, debt-free transaction for a cash purchase price of $386 million. PCA is the fourth largest producer of containerboard and corrugated packaging products in the United States and the third largest producer of uncoated free-sheet paper in North America. PCA operates eight mills and 90 corrugated products plants and related facilities.

US commercial printing industry sales are expected to increase between 1.5% and 3% in 2017, according to an industry report and forecast released in September 2016 by printing trade industry association Idealliance. In the first half of 2016, printing industry sales grew just 0.3% from the same period the year before, the weakest growth in three years. Commercial printing industry supply and production capacity continue to outstrip demand as the digitization of information has eroded demand for core services. However, nearly 49% of printers surveyed for Idealliance’s 2016 State of the Industry report said their profits rose in the first half of 2016 compared to the same period in 2015; about 27% said profits had declined. Gains in profitability were achieved mainly by controlling costs, increasing production efficiencies, and winning higher-margin work.

Industry Indicators

  • US corporate profits, an indicator for corporate demand for printing services, fell 4.9% in the second quarter of 2016 compared to the same period in 2015.
  • US nondurable goods manufacturers’ shipments of printed goods, an indicator of demand for commercial printing, rose 0.4% year-to-date in August 2016 compared to the same period in 2015.

Posted by Anthony Contaldo.

Read the Entire Print & Packaging 4th Quarter Newsletter Here


Packaging & Printing | M&A News Update

By Anthony Contaldo | Sep 29, 2016

packaging & printingM&A activity for North American based target companies in the packaging & printing sector for Q2 2016 included 39 closed deals, according to data published by industry data tracker FactSetThe average transaction value was $22.5 million.

One of the largest international transactions of the quarter was announced at the end of May when CVC Capital Partners announced that it signed a binding agreement to acquire ÅR Packaging Group AB. Under the terms of the transaction, CVC will acquire 100% of the company from its current owners, Ahlstrom Capital and Accent Equity. AR Packaging is one of Europe’s leading packaging companies with sales of approximately 560 million EUROS.

US demand for corrugated and paperboard boxes is forecast to grow 2.6% per year, reaching a value of more than $41 billion by 2020, according to an April 2016 report by The Freedonia Group. While market maturity and increased use of competing packaging materials are expected to limit volume growth, box manufacturers are responding by offering higher-margin, value-added products, including high-quality printing, easy-open tear strips, and special coatings. Corrugated box demand is forecast to rise 3% per year through 2020 amid demand related to e-commerce and rising use of shipping containers that double as retail displays. Folding carton demand is expected to post slower annual growth of 1.5% amid increased competition from flexible packaging such as stand-up pouches. However, pharmaceutical demand and the environmental benefit of folding cartons relative to plastic and foam restaurant containers should help sustain moderate growth. Read more »


Printing & Packaging Industry M&A News Update

By Anthony Contaldo | Jul 21, 2016

Printing & PackagingM&A activity for North American based target companies in the Printing & Packaging sector for Q1 2016 included 66 closed deals, according to data published by industry data tracker FactSet.  The average transaction value was $100 million.

Pulp and paper commodity pricing tailed off significantly in the first quarter lowering manufacturing costs and providing a great opportunity for box manufacturers to hedge their bets on raw materials.

Global demand for security printing services is forecast to increase nearly 6% per year between 2015 and 2020, according to a recent report by Smithers Pira. Security printing uses overt and covert print-based features to deter counterfeiting while providing a means of in-field authentication. Security printing techniques include watermarking, holograms, magnetic inks, optically variable color changing inks, and RFID. Brand protection is expected to be a strong growth segment for security printing in industries including pharmaceutical packaging, and tobacco and alcoholic beverage labels as companies seek compliance with government regulations and to protect against counterfeiting. Other top security printing market segments include checks, ticketing, payment cards, and stamps. Read more »


Print & Packaging Industry News Update

By Anthony Contaldo | Feb 18, 2016

Print & Packaging Industry NewsPrint & Packaging Industry News

US producer prices for paper fell 0.6% in September 2015 compared to the same month a year earlier. Newsprint mills saw the largest decline with a drop in prices of more than 16%. Prices received by paperboard mills were off nearly 3%, while paper mill prices declined 1%. Producer prices for converted paper products were flat. US paper producers face a tough pricing environment amid imports from low-cost producers and an overall downward trend in consumption of paper, especially newsprint. Although overall US imports of paper were flat in the first eight months of 2015 compared to the same period in 2014, imports from China and Mexico were up 9% and 16%, respectively.

Global demand for security printing services is forecast to increase nearly 6% per year between 2015 and 2020, according to a recent report by Smithers Pira. Security printing uses overt and covert print-based features to deter counterfeiting while providing a means of in-field authentication. Security printing techniques include watermarking, holograms, magnetic inks, optically variable color changing inks, and RFID. Brand protection is expected to be a strong growth segment for security printing in industries including pharmaceutical packaging, and tobacco and alcoholic beverage labels as print & packaging companies seek compliance with government regulations and to protect against counterfeiting. Other top security printing market segments include checks, ticketing, payment cards, and stamps.

Industry Indicators

  • US corporate profits, an indicator of corporate demand for converted paper products, fell 4.7% in the third quarter of 2015 compared to the same period in 2014.
  • US nondurable goods manufacturers’ shipments of paper products, an indicator of converted paper product demand, fell 0.8% year-to-date in November 2015 compared to the same period in 2014.

Posted by Anthony Contaldo.

Read the Entire Print & Packaging 1st Quarter Newsletter Here


M&A News from the Print and Packaging Industry

By Anthony Contaldo | Nov 25, 2015

Print & PackagingGlobal demand for digital printing of packaging materials is expected to experience strong growth over the next five years, according to a recent report by Smithers Pira, a packaging consulting group. The volume of digitally printed packaging products is forecast to increase by more than 16% per year through 2020. Labels continue to be the segment’s primary product, but new digital printing applications for cartons, corrugated containers, flexible packaging, rigid plastics, and metal decorating are forecast to experience rapid growth. Other key drivers of demand include improving economic conditions and a trend toward shorter print runs, for which digital technology can be more cost-effective than traditional print and packaging techniques.

The Asia Pacific region is forecast to be the chief demand driver for folding cartons as the global market rises from $87 billion in 2014 to $106 billion by 2020, according to a recent report by Smithers Pira. Global demand is expected to increase 5% in 2015, then slow to 3.5% per year through 2020. The Asia-Pacific region’s share of global folding carton consumption is forecast to rise from 52% in 2014 to more than 60% in 2020. China’s share of world consumption is expected to increase from 31% in 2010 to 39% in 2020. The Indian sub-continent is expected to be the second-largest market, accounting for 6% of global consumption. The top folding carton end-use markets are health care products, tobacco, household care, hardware and electrical products, and dry foods. Amid pressure from brand owners that wish to differentiate their products from competitors, folding carton manufacturers will be challenged to invest in innovative new products and carton printing techniques.

Posted by Anthony Contaldo.

Read the Entire Print & Packaging 4th Quarter Newsletter Here


Print & Packaging M&A Industry Update

By Anthony Contaldo | Aug 06, 2015

PRIPG-Offset PressSparked by the RockTenn and MeadWestvaco transaction there appears to be a strong trend toward consolidation in the print & packaging sector. On the printing side there is a trend toward technological acquisitions and strictly print outlets look to acquire digital properties. An example was early in the year when A.H. Belo Corp., owner of the Dallas Morning News, purchased a majority ownership stake in three Dallas-based digital marketing companies for $15.3 million as part of the publishing company’s ongoing push to diversify.

Commercial printers continue to be challenged by the trend toward digital advertising formats. Global spending on newspaper and magazine advertising, a major demand driver for commercial printing services, is expected to decrease over the next two years as digital marketing activity increases. Spending on newspapers and magazines is expected to fall 3.8 percent and 1.7 percent, respectively, in 2015, according to a forecast released by media planning agency Carat in March 2015. Newspaper spending is projected to fall an additional 2.5 percent in 2016, while magazine spending is expected to drop 1.7 percent. Meanwhile, digital ad media spending is forecast to jump 15.7 percent in 2015 and 13.8 percent in 2016.

  • US nondurable goods manufacturers’ shipments of paper products, an indicator of converted paper product demand, rose 3.3 percent year-to-date in April 2015 compared to the same period in 2014.
  • US nondurable goods manufacturers’ shipments of printed goods, an indicator of demand for commercial printing, rose 3.5 percent year-to-date in April 2015 compared to the same period in 2014.
  • According to data published by the Interindustry Economic Research Fund, Inc. (IERF), revenue for US paperboard container production is forecast to grow at an annual compounded rate of 2 percent between 2015 and 2019.

Posted by Anthony Contaldo.

Read the Entire Print & Packaging 3rd Quarter Newsletter Here


Print & Packaging Industry Update

By Anthony Contaldo | Jul 01, 2015

Colour bar off cuts thrown into the recycle cage...According to data from the Interindustry Economic Research Fund (IERF), revenue for US print & packaging providers is forecast to grow at an annual compounded rate of 3.5 percent between 2015 and 2019. In addition, Freedonia Group, a global research group, projects worldwide demand for corrugated boxes to rise more than 4 percent per year through 2017.

In recent years the population at large has placed greater importance on “green” business practices and packaging has been at the forefront. According to a recent survey conducted by Asia Pulp & Paper, more than half of Americans (56%) indicate they’d like to see more sustainable packaging when they purchase products. In addition, 42% of Americans replied that they’d be open to paying more for products if the packaging options were more environmentally friendly. As such, packaging manufacturers have enforced manufacturing greener products by creating lighter weight products and have favored the use of recycled materials.

To remain competitive in 2015, commercial printers may seek to acquire or enhance their ability to offer data analytics services and to market innovative printed materials to B2B customers. Printers are expected to increasingly embrace data analytics and micro-targeting services to enhance their offerings to customers.

  • US nondurable goods manufacturers’ shipments of printed goods, an indicator of demand for commercial printing, rose 3.4% year-to-date in March 2015 compared to the same period in 2014.
  • US nondurable goods manufacturers’ shipments of paper products, an indicator of converted paper product demand, rose 0.7% year-to-date in March 2015 compared to the same period in 2014.

Posted by Anthony Contaldo.

Read the Entire Print & Packaging 2nd Quarter Newsletter Here


Print and Packaging M&A Update

By Anthony Contaldo | Apr 24, 2015

Color PrintingAccording to a report from international consulting firm Ernst and Young, M&A activity in the print and packaging sector is expected to sustain well into 2015 driven by industry continued growth, cross-border transactions and strong interest from the private equity looking for add-on acquisitions.

During According to First Research, an industry research organization, Global demand for folding cartons used in product packaging is forecast to grow more than 5 percent per year, reaching a value of $184 billion by 2018, according to paper and packaging research firm Smithers Pira. Growth will be led by rising demand in emerging markets for health care products, dry foods, frozen and chilled foods, and cigarettes; folding carton growth in developed markets is forecast to be relatively slow. Key trends that are expected to drive future growth for folding cartons include migration barriers that prevent printing inks and other chemicals from contacting foods, downsized packaging designs, and single-serving packs. Smart packaging – enabled by low-cost printed electronics – will soon allow companies to convey product information electronically on cartons. Key factors driving demand for smart packaging include an aging population, rising global affluence, and greater concern about product tampering.

Posted by Anthony Contaldo.

Read the Entire Print & Packaging 1st Quarter Newsletter Here