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Exit and Growth Strategies for Middle Market Businesses

M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | May 21, 2018

The report below provides a good overview of the second 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 Q1 2018 included 18 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in March when Huntsman Corp acquired Demilec (USA), Inc., a portfolio company of Sun Capital Partners Inc, for US$350 million in cash, subject to adjustments. Huntsman Corp. manufactures chemicals for the plastics, automotive and construction industries. Demilec engages in the manufacture of spray polyurethane foam insulation and coatings. The firm offers products such as demilec APX, sealection 500, pour-in-place, agribalance, heatlok soy, barnseal, geolok, and eco-pur pour-in-place. It also provides a range of products to meet the needs of homeowners, building professionals, architects and insulation contractors.

Worldwide tire sales, a major indicator of rubber usage, are forecast to grow 7% annually to reach a value of about $260 billion by 2019, according to the Freedonia Group.

Industry Indicators

  • US nondurable goods manufacturers’ shipments of plastics and rubber products, an indicator of plastic and rubber products production, rose 3.0% year-to-date in February 2018 compared to the same period in 2017.
  • The spot price of crude oil, a key raw material in plastic and rubber manufacturing, rose 23.0% in the week ending April 6, 2018, compared to the same week in 2017. Total US revenue for telecommunications rose 1.3% in the fourth quarter of 2017 compared to the previous year.

Posted by Jim Zipurski.

Read the Entire Plastics and Rubber 2nd Quarter Newsletter Here


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