InSight

Exit and Growth Strategies for Middle Market Businesses

M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Aug 17, 2018

The report below provides a good overview of the third quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q2 2018 included 35 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions was announced in June when a private group led by the management of Comar, LLC and Morgan Stanley Capital Partners (Private Equity) acquired Comar from Graham Partners, Inc., for an undisclosed amount. Founded in 1949, Comar is located in Voorhees, New Jersey and manufactures plastic bottles and other plastic products.

Injection molders across the US have differentiated themselves by specializing in specific processes. Highly specialized firms can be more attractive acquisition targets for larger companies looking to improve capabilities.

Industry Indicators

  • US nondurable goods manufacturers’ shipments of plastics and rubber products, an indicator of plastic and rubber products production, rose 2.2% year-to-date in May 2018 compared to the same period in 2017.
  • The spot price of crude oil, a key raw material in plastic and rubber manufacturing, rose 64.0% in the week ending July 6, 2018, compared to the same week in 2017.

Posted by Jim Zipurski.

Read the Entire Plastics and Rubber 3rd Quarter Newsletter Here


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