M&A News In The Print and Packaging Industry Sector

M&A News In The Print and Packaging Industry Sector

By Jeff Wright

November 19, 2018

The report below gives a good overview of the fourth 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 Q3 2018 included 25 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in July when Ahlstrom-Munksjö Oyj acquired Expera Specialty Solutions, LLC from KPS Capital Partners LP for US$615 million in cash, subject to an agreed post completion adjustment. The transaction would allow Ahlstrom-Munksjö Oyj to expand its operations in North America and strengthens its services offerings. Founded in 2013, Expera Specialty Solutions is located in Kaukauna, Wisconsin and manufactures and converts lightweight packaging, pressure sensitive and industrial papers.

Board and paperboard (corrugated, folding carton stock and liquid paperboard) is the largest packaging material type according to a recent study conducted by Smithers Pira. It accounts for 35.7% of world packaging consumption followed by flexible packaging (plastic, paper and foil) with 23.3%, rigid plastic packaging with 18.2% and metal with 12.2%.

Industry Indicators

  • US corporate profits, an indicator for corporate demand for printing services, rose 7.7% in the second quarter of 2018 compared to the same period in 2017.
  • US nondurable goods manufacturers’ shipments of printed goods, an indicator of demand for commercial printing, rose 0.6% year-to-date in July 2018 compared to the same period in 2017.
  • The spot price of crude oil, a key cost factor in commercial printing operations, rose 46.8% in the week ending September 7, 2018, compared to the same week in 2017.

Posted by Jeff Wright.

Read the Entire Print and Packaging 4th Quarter Newsletter Here