InSight

Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Print/Packaging’ Category

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.

Read more »


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.

Read more »


M&A News In The Print and Packaging Industry Sector

By Anthony Contaldo | Apr 02, 2018

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 Packaging and Printing sector for Q4 2017 included 26 closed deals, according to data published by industry data tracker FactSet.
One of the largest transactions of the quarter closed in October when Genstar Capital, LLC acquired Tekni Plex, Inc., a portfolio company of American Securities, LLC, for a reported value approximately US$1.5 billion. Founded in 1988, Genstar Capital is a private equity firm located in San Francisco, California. Tekni-Plex manufactures and sells packaging, packaging products and materials and tubing products primarily for the food and beverage, healthcare, specialty, lawn and garden and consumer markets.

According to a report from Smithers Pira, an industry research group, the digitally printed labels and packaging market was worth $13.4 billion in 2017. By 2022, the rapidly expanding digital (inkjet and toner) packaging market will grow by almost 13% annually to exceed $22 billion.

Read more »


M&A News In The Print and Packaging Industry Sector

By Anthony Contaldo | Nov 16, 2017

The report below gives a good overview of the 4th 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 Q3 2017 included 29 closed deals, according to data published by industry data tracker FactSet.

One of the largest middle market deals closed in July when West Fraser Timber Co. Ltd. acquired Gilman Paper Co, trading as The Gilman Cos, from The Howard Gilman Foundation, Inc. and other shareholders, for US$418 million in cash, subject to certain post-closing adjustments. The acquisition enhances West Fraser Timber’s portfolio of paper businesses. According to data from Smithers Pira the corrugated board packaging market is projected to top $67 billion this year.

Read more »


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.

Read more »


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