Plastics M&A activity is in the spotlight in a major financial publication today. Crain's Cleveland Business, a sister publication to Plastics News, has a Page 1 story in its March 8 issue headlined: "Plastics firms play chess in recession: Stronger outfits emerge through acquisitions, while weak lose out." The story notes that M&A activity in northeast Ohio's plastics industry "is resulting in stronger players taking out weak ones in an industry realignment that is driven by the recession, but which some observers say has been needed." A key source quoted is Bill Ridenour, CEO of Polymer Transaction Advisors Inc., a Newbury, Ohio-based M&A firm that specializes in the plastics industry. Ridenour told Crain's Cleveland that companies are pursuing M&A strategies to enter new geographical or end-use markets, or to dilute their dependence on "troubled sectors" such as automotive. A lack of investment by private equity firms and other so-called "financial buyers," who in better times relied on easy credit to make acquisitions, means a friendlier market for traditional strategic buyers. These are all trends that Frank Esposito, Plastics News' senior reporter who covers the M&A beat, has noted in our stories in recent months. It is interesting that Crain's Cleveland has noticed the trend, and considers it important enough news for Page 1.
Plastics M&&A in the spotlight
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