Industry Insights: Global Packaging Industry, Summer 2023
As the Industry heads to Pack Expo in September, Mazzone & Associates provides our semi-annual update on Mergers & Acquisitions activity in the Packaging Industry. Key observations for this edition of Industry Insights:
Transaction Volumes are down from 2022: -7% for the trailing four quarters (June 2023) and -13% for the annualized run rate. There are signs, however, that volumes will bounce back in the second half of this year (p. 2).
EBITDA Multiples are down year-over-year, normalizing to the mean of the last five years. While EBITDA Multiples are down, Revenue Multiples are up, signaling shifts in profitability of transacted companies (p. 4).
Financial Sponsors, both as strategic add-on acquirers and new platform buyers, remain very active, whereas Private and Corporate Buyers are being less aggressive (p. 5).
Overall Cross-Regional M&A is consistent with prior years, but shifts in Target Geographies favor EMEA and ROW (Rest of World) versus North America (p. 6).
Public Company valuations have not shifted significantly over the last year and remain at the lower end of their trading range for the past decade (pp. 6-7).
