Plastics mergers and acquisitions activity remained strong in the first half of 2018, with private equity investments continuing to play a larger role in the market.
P&M Corporate Finance LLC tracked 172 global plastics and packaging deals in the first half, down by seven deals — about 4 percent — from the first half of 2017. But that total still has the market on pace to top the number of deals recorded in three of the last five years.
The total deal count "is consistent with sustained levels and indicates an extension of the current M&A environment," PMCF Managing Director John Hart said. He added that key trends supporting deal volume include the desire of industry players to acquire new capabilities, expand their product portfolios, access new customers and expand their geographic reach.
Ongoing consolidation in specific market segments is also playing a role in plastics M&A, Hart said.
Within those totals, the influence of private equity is growing. Private equity was involved in 35 percent of plastics M&A deals on average from 2006 to 2015, according to data from Southfield, Mich.-based PMCF, but that share has grown to 42 percent since 2016. And the PE share was even higher in the first half of 2018, when those firms had a hand in 49 percent of plastics M&A transactions.
Plastics News recently checked in with several financial pros to survey the plastics M&A landscape of the first half of 2018.