M&A Quarterly News In The Plastics and Rubber Industry Sector

M&A Quarterly News In The Plastics and Rubber Industry Sector

By Jim Zipursky

November 27, 2019

The report below gives a good overview of the fourth quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q3 2019 included 19 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in July when HEXPOL AB acquired Preferred Compounding Corp, a portfolio company of Audax Private Equity, for approximately US$232 million in cash. The transaction expands the business portfolio of HEXPOL AB. With 540+ employees, Preferred Compounding Corp is located in Copley, Ohio and manufactures organic rubber compounds.

Industry Indicators

  • US nondurable goods manufacturers’ shipments of plastics and rubber products, an indicator of plastic and rubber products production, rose 0.0% year-to-date in August 2019 compared to the same period in 2018.
  • The spot price of crude oil, a key raw material in plastic and rubber manufacturing, fell 27.0% in the week ending October 11, 2019, compared to the same week in 2018.

Posted by Jim Zipursky.
Read the Entire Plastics and Rubber 4th Quarter Newsletter Here