Kickstart: What does M&A due diligence look like during a pandemic?

This year is a strange one in many ways, including the increased hurdles it is rolling out in mergers and acquisitions for the plastics industry.

Back in January, when Frank Esposito took a look at the M&A field in 2019, there was no reason to expect any major disruptions. The industry had seen 337 deals in 2019, down 10 from the year before. Private equity buyers were still on the lookout, and medical and packaging companies were eyed as potential purchasing targets.

Even in the first quarter of 2020, Stout Investment Banking of Chicago tracked 93 global plastics M&A deals, a level close to the average of the last several quarters, as Frank writes in this week's Plastics News. Once the global impact of COVID-19 hit in mid-March, things changed.

"Deals are still getting done in this environment, but it appears to be with companies that haven't been materially impacted by COVID-19," P&M Corporate Finance Managing Director John Hart said."We expect to see lower M&A activity in plastics and packaging for the next couple of months as a result."

Eaton Corp. has been busy finding ways to contribute to the coronavirus response.

Normally seen as an auto supplier (with some plastics and rubber) the company is part of a multi-company Ohio project to supply face shields to medical workers.

The Cleveland-based company also is using its 3D printers to make small tools similar to a plastic wrench that medical staff can use to open doors, turn water faucets on and off, touch elevator buttons and even open car doors. The fewer things doctors and nurses have to physically touch, the lower the chances of picking up the virus from infected surfaces.

Our sister publication Automotive News Europe has a story on carmaker Ferrari using its 3D printing machines to make parts of respirator systems.

The thermoplastic valves were first used in Italy but now are in use in multiple countries, Ferrari says.

The parts are typical of a valve used on recreational snorkels by divers but were similar enough to go into use on the respirators.