InSight

Exit and Growth Strategies for Middle Market Businesses

Plastics & Rubber M&A Update

By Catherine Patience | Nov 08, 2013

Plastic BottlesAccording to data from S&P Capital IQ, transactional activity in plastics and rubber manufacturing since the end of 2010 has benefited from improving financing conditions, stable business growth and narrowing gaps in business valuations. In 2012, financial and strategic buyers became more active, resulting in an increase in the number of deals completed by approximately 3%. Plastics M&A volume increased more than 25% in 2012, with the highest amount of activity generated by plastic packaging and industrial plastics transactions. Many private equity began liquidating their holdings in the space, due to increasing multiples in 2012. 2013 is expected to see a slight increase in M&A activity for the plastics and rubber manufacturing industry in North America, mainly driven by sellers looking to take advantage of high valuation multiples and favorable access to capital.

Read the Entire Plastics & Rubber 3rd Quarter Newsletter Here


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