Packaging – October 2021

Consumer End Market Growth Drives Heightened Packaging M&A Activity

Capstone Partners released its October 2021 Packaging Industry Update reporting that merger and acquisition (M&A) activity has continued at a strong pace following record transaction volume in 2020 as strategic and private equity (PE)-backed buyers have consolidated competitors to gain exposure to defensible end markets, increase market share, and expand product portfolios.

Capstone expects packaging providers to continue to see strong demand driven by the adoption of online shopping, rising per capita income, and climbing industrial production. Packaging and labeling providers serving attractive end markets, providing technology-enabled products, or developing sustainable solutions are expected to continue to attract buyer interest and fetch premium valuations.

Also included in this report:

• Why large public packaging companies have reported strong results in Q2 despite rising raw material prices
• How elevated consumer awareness surrounding sustainability, increasingly stringent environmental regulations, and rising corporate environmental, social, and governance (ESG) interest are impacting the industry
• A buyer spotlight providing a company overview of B2B Industrial Packaging, a business-to-business (B2B) packaging provider and active acquirer in the space