InSight

Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Print and Packaging Industry Sector

By Jeff Wright | Aug 27, 2019

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 2019 included 29 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector closed in June when Bio Pappel International, Inc., a subsidiary of Bio-PAPPEL SAB de CV, acquired a 55% majority stake in US Corrugated, Inc. for an undisclosed amount. The transaction would allow Bio Pappel International to double its operations in United States, and also expands opportunities, product and service offerings. US Corrugated is located in Washington, Pennsylvania and manufactures corrugated packaging products.

Industry Indicators

  • US corporate profits, an indicator for corporate demand for printing services, rose 3.1% in the first quarter of 2019 compared to the same period in 2018.
  • US nondurable goods manufacturers’ shipments of printed goods, an indicator of demand for commercial printing, rose 2.5% year-to-date in May 2019 compared to the same period in 2018.
  • The spot price of crude oil, a key cost factor in commercial printing operations, fell 22.3% in the week ending July 5, 2019, compared to the same week in 2018.

Posted by Jeff Wright.

Read the Entire Print and Packaging 3rd Quarter Newsletter Here


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