M&A News | Print & Packaging Industry

M&A News | Print & Packaging Industry

By Anthony Contaldo

March 31, 2017

Print & Packaging IndustryOne of the largest deals of the Print & Packaging Industry in the 4th quarter of 2016 took place in November when Ocelot Acquisition, Inc., a newly formed joint venture of CVC Capital Partners Ltd and BA Glass BV, agreed to acquire Anchor Glass Container Corp, a portfolio company of KPS Capital Partners LP and AlpInvest Partners BV for more than US$1 billion in cash. Anchor Glass Container, based in Tampa, Florida, manufactures glass containers. It offers beer, beverage, liquor, food and custom mold making products and services.

US demand for boxes used in e-commerce is forecast to rise more than 10% per year through 2020, according to a December 2016 report by The Freedonia Group. In the coming years, online shopping is expected to increase its share of the overall retail market, driving the US e-commerce box market to more than $1 billion in annual sales by 2020. The market is also being driven by consumers’ growing comfort with purchasing large items online which require larger and more expensive boxes for shipping. While e-commerce retailers are expected to remain the largest market for boxes used in online shopping, third-party logistics providers will drive the strongest growth. Demand for subscription boxes will drive sales of corrugated boxes as well as custom set-up boxes with high-quality graphics and inserts. High-quality set-up boxes help consumer product companies differentiate products through unique consumer “unboxing” experiences.

Industry Indicators

  • US corporate profits, an indicator of corporate demand for converted paper products, rose 2.8% in the third quarter of 2016 compared to the same period in 2015.
  • US nondurable goods manufacturers’ shipments of paper products, an indicator of converted paper product demand, rose 0.1% year-to-date in November 2016 compared to the same period in 2015.

Posted by Anthony Contaldo.

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