Find our Midyear Mergers & Acquisitions report on pages 9-14 of this week's issue. Readers can also find a record of reported deals at our exclusive M&A Tracker.
Mergers & Acquisitions
Midyear M&A report: Industry takes on interest rates, product offerings
High interest rates played a major role in plastics M&A deal volume being flat for the first half of 2024.
In the first six months of the year, the number of plastics M&A deals registered at 177, exactly matching the number seen in the first half of 2023, according to data compiled by P&M Corporate Finance of Southfield, Mich. Sequentially, the first-half total was down almost 14 percent vs. the 205 seen in the second half of 2023.
Interest rates began to rise from a historically low level of 0.25 percent in March 2022, and after a series of increases reached 5.5 percent in July 2023. They've stayed at that level since. Read more.
Kafrit first acquired ABSA Resin Technologies Inc., a compounder and recycler based in Cambridge, Ontario. Officials with Kafrit in Negev, Israel, said the acquisition of ABSA "will add a complete line of filled and reinforced thermoplastic compounds, recycling capabilities and technical services." Kafrit then bought Badger Color Concentrates Inc. of Mukwonago, Wis. Badger makes color concentrates and liquid colorants.
LyondellBasell of Houston bought a 35 percent stake in Saudi Arabia-based National Petrochemical Industrial Co. (NATPET) from Alujain Corp. for $500 million. Officials said the deal positions LYB to grow and upgrade its core polypropylene resin business through access to advantaged feedstocks, plus additional product marketing capacity in a strategic region.
Resin distributors Bamberger Polymers and Amco Polymers merged to create a new firm, Bamberger Amco Polymers. Officials said the merger "is a significant step towards combining the strengths and expertise of two well-established polymer distribution businesses." Read more about the deals…
Miter Brands' $3.1 billion acquisition of PGT Innovations Inc. topped the list of major plastics processing merger and acquisition deals in the first half of 2024.
A few serial acquirers were active again in the first half. AmerCareRoyal LLC, backed by private equity firm HCI Equity Partners, purchased Thermosource Tooling and Manufacturing LLC. The deal marked ACR's ninth acquisition since HCI invested in the company in 2014.
American Plastic Toys Inc., based in Walled Lake, Mich., was acquired by Northville Plastics Inc., a new platform company headed by Jon Carlson.
Read more in compounding deals...
Well-known plastics machinery brands Kautex Maschinenbau GmbH and Netstal Machinen AG found new owners in the first half of 2024.
Kautex, an extrusion blow mold machinery maker based in Bonn, Germany, had been financially insolvent for months before being acquired by Chinese investor Jwell Machinery Co. Ltd. Terms were not disclosed.
German packaging and bottle machine manufacturer Krones AG acquired Swiss injection press supplier Netstal for $183.7 million. The seller was Germany's KraussMaffei Technologies GmbH, which has been majority owned by China National Chemical Corp. since 2016.
Ventura, Calif.-based 3D printer maker Nexa3D Inc. acquired Pflugerville, Texas-based Essentium Inc., a manufacturer of complementary high-speed extrusion 3D printers. Essentium also has a portfolio of materials for defense, medical and chemical end markets.
Packaging giant Berry Global Group Inc. expanded its tooling capabilities through the acquisition of F&S Tool Inc. of Erie, Pa.. The deal gives Berry a 90,000-square-foot facility and 105 employees.
Read more about the machinery deals so far in 2024.
Brent Cunningham, the head of packaging, paper and plastics investment banking at financial firm Raymond James in New York, says interest rates have contributed to a slower market in mergers and acquisitions.
In a Q&A with Plastics News, Cunningham notes the slowdown in M&A in packaging began in 2022 as interest rates rose, altering debt leverage levels and the overall cost of debt.
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