According to the latest data, in the first half of 2013, global mergers and acquisitions in the plastics industry decreased nearly one-quarter year-on-year.
As of June 11, P&MCorporate Finance, a merger and acquisition company based in the United States, tracked 146 global plastics and packaging M&A deals, a 23% drop from the first half of 2012.
According to P&M's report, the end markets with the largest drop in M&A activity included food and beverages (down 31%), industry (down 21%) and consumer goods (down 47%).
As far as the processing industry is concerned, the blow molding industry has seen the largest decline. In the first half of last year, there were 16 M&A deals in this area, and only 8 in the first half of this year. The number of M&A deals in the injection molding industry dropped by 20 compared with the same period last year.
According to news from plastics news, in the first half of 2013, the single most valuable transaction was Milacron's purchase of Mold-Masters for US$970 million. Other large-scale transactions include: Jabil Electronics (Jabil Circuit) acquired Nypro, a leading manufacturer of injection molds in North America, for $665 million; CCLI Industries purchased two packaging plants for Avery Dennison for US$500 million.
According to Standard & Poor's (S&P), a credit rating agency, in many mergers and acquisitions, strategic buyers usually pay about 10 times for transactions of more than US$500 million; financial buyers have less than eight times.
For transactions less than $500 million, strategic buyers will have to pay about 8 times. Financial buyers usually do not do such small transactions.
As of June 11, P&MCorporate Finance, a merger and acquisition company based in the United States, tracked 146 global plastics and packaging M&A deals, a 23% drop from the first half of 2012.
According to P&M's report, the end markets with the largest drop in M&A activity included food and beverages (down 31%), industry (down 21%) and consumer goods (down 47%).
As far as the processing industry is concerned, the blow molding industry has seen the largest decline. In the first half of last year, there were 16 M&A deals in this area, and only 8 in the first half of this year. The number of M&A deals in the injection molding industry dropped by 20 compared with the same period last year.
According to news from plastics news, in the first half of 2013, the single most valuable transaction was Milacron's purchase of Mold-Masters for US$970 million. Other large-scale transactions include: Jabil Electronics (Jabil Circuit) acquired Nypro, a leading manufacturer of injection molds in North America, for $665 million; CCLI Industries purchased two packaging plants for Avery Dennison for US$500 million.
According to Standard & Poor's (S&P), a credit rating agency, in many mergers and acquisitions, strategic buyers usually pay about 10 times for transactions of more than US$500 million; financial buyers have less than eight times.
For transactions less than $500 million, strategic buyers will have to pay about 8 times. Financial buyers usually do not do such small transactions.