coke can, Packaging trends, Packaging M&A Update: Q4 2016

Analysis

Packaging M&A update: Q4 2016

Sustainability and the use of plastics continue to remain strong within the packaging industry, as strong consumer spending and low input prices are expected in the coming year. This Packaging M&A update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the Packaging industry.

Packaging trends1,2

  • Consumer spending. An increase in consumer spending often propels strong demand for packaging products, especially for food and consumer applications. Consumer spending is expected to further increase in 2017, likely creating strong growth opportunities for packaging manufacturers.
  • Declining input prices. Declining prices for key raw material inputs, specifically plastic resin, have allowed many operators to significantly boost profitability, and utilize excess cash flow to make capital investments in expanding and upgrading equipment.
  • Sustainability. Packaging manufacturers with sustainable manufacturing practices and recyclable products have seen a significant increase in demand due to a shift in consumer preferences towards environmentally friendly products.
  • Favorability of plastics. The use of plastics as the medium of choice for packaging products has significantly increased due to their light-weight properties, flexible design features and visual appeal, and rapid advancements in technology.

This newsletter is a periodic compilation of certain capital markets information. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Any reference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients and friends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.

References

1 “Packaging & Labeling Services in the US: Market Research Report”, IBIS World. June 2016.

2 “Bemis Company, Inc.” Equity Research Report. RBC Capital Markets, Inc. February 18, 2016.

Did you find this useful?