Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Print and Packaging Industry Sector

By Jeff Wright | Feb 27, 2019

The report below gives a good overview of the first 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 Q4 2018 included 28 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in December when New-Indy Catawba LLC, a subsidiary of New-Indy Containerboard LLC, itself a joint venture between Schwarz Partners LP and The Kraft Group LLC, acquired the business and assets related to the Paper & Pulp Mill division from Resolute FP US, Inc., a subsidiary of Resolute Forest Products, Inc. for US$260 million in cash and US$40 million in assumed liabilities, subject to customary closing adjustments. The acquisition would complement the containerboard manufacturing business of New-Indy Containerboard LLC. The assets and business related to the Paper & Pulp mill business of Resolute Forest Products Inc is located in Catawba, South Carolina.

Industry Indicators

  • US corporate profits, an indicator for corporate demand for printing services, rose 10.3% in the third 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 1.3% year-to-date in October 2018 compared to the same period in 2017.
  • The spot price of crude oil, a key cost factor in commercial printing operations, fell 19.7% in the week ending January 11, 2019, compared to the same week in 2018.

Posted by Jeff Wright.

Read the Entire Print and Packaging 1st Quarter Newsletter Here

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