InSight

Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Print/Packaging’ Category

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