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Printing & Packaging Industry M&A News Update

By Anthony Contaldo | Jul 21, 2016

Printing & PackagingM&A activity for North American based target companies in the Printing & Packaging sector for Q1 2016 included 66 closed deals, according to data published by industry data tracker FactSet.  The average transaction value was $100 million.

Pulp and paper commodity pricing tailed off significantly in the first quarter lowering manufacturing costs and providing a great opportunity for box manufacturers to hedge their bets on raw materials.

Global demand for security printing services is forecast to increase nearly 6% per year between 2015 and 2020, according to a recent report by Smithers Pira. Security printing uses overt and covert print-based features to deter counterfeiting while providing a means of in-field authentication. Security printing techniques include watermarking, holograms, magnetic inks, optically variable color changing inks, and RFID. Brand protection is expected to be a strong growth segment for security printing in industries including pharmaceutical packaging, and tobacco and alcoholic beverage labels as companies seek compliance with government regulations and to protect against counterfeiting. Other top security printing market segments include checks, ticketing, payment cards, and stamps.

The global inkjet print and printed packaging market, currently valued at nearly $62 billion, is expected to grow nearly 13% per year between 2016 and 2021, according to a March 2016 report by Smithers Pira. Demand for inkjet printing is rising in part because of cost benefits relative to analog and digital printing technology. Key growth markets for inkjet include packaging, labels, and textile printing. Inkjet also offers value-added opportunities with the capability to use thicker inks and specialty fluids that add texturing and dimensional printing effects.

Industry Indicators

  • US nondurable goods manufacturers’ shipments of printed goods, an indicator of demand for commercial printing, rose 2.0% year-to-date in March 2016 compared to the same period in 2015.
  • The spot price of crude oil, a key cost factor in commercial printing operations, fell 23.7% in the week ending May 6, 2016, compared to the same week in 2015.

Posted by Anthony Contaldo.

Read the Entire Print & Packaging 2nd Quarter Newsletter Here


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