Stout’s Investment Banking group, Chicago, Illinois, has released its Plastics and Packaging update for 1H 2018.
Medical plastics and plastic packaging M&A activity led the charge during the first half of 2018, increasing 28% and 11%, respectively, year over year (YOY). Other bright spots included an increase in tool and die, thermoforming and machinery transactions, which all increased YOY. In addition, there was a significant increase in overall plastics transactions involving hybrid buyers (strategic buyers owned by private equity firms), which increased 45% YOY.
Overall, global plastics industry M&A activity declined 7% during the first half of 2018, YOY, driven primarily by fewer industrial plastics transactions and lower M&A volume for three of the key process segments – injection molding, extrusion and resin/compounding. There also were fewer domestic and cross-border transactions during the first half of 2018. Most of the decline occurred in the first quarter, which had 96 total transactions, while second quarter rebounded with 108 transactions, which is more in line with the previous 10 quarters.
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