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."