Drop in packaging M&A deals YoY by 74.1%

Global packaging M&A deals – US$ 195.86 million in Q2 2020

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M&A deals
Mergers and Acquisitions by Nick Youngson CC BY-SA 3.0 Alpha Stock Images

29 July 2020 – Total packaging industry M&A deals in Q2 2020 were worth US$ 195.86 million announced globally, according to GlobalData’s deals database. The value marked a decrease of 92.1% over the previous quarter and a drop of 93.2% when compared with the last four-quarter average, which stood at US$ 2.89 billion.

Comparing deals value in different regions of the globe, Europe held the top position, with total announced deals in the period worth US$ 103.25 million. At the country level, Sweden topped the list in terms of deal value at US$ 71.28m.

In terms of volumes, North America emerged as the top region for packaging industry M&A deals globally, followed by Asia-Pacific and then Europe. The top country in terms of M&A deals activity in Q2 2020 was the US with 12 deals, followed by China with six and Sweden with three.

In 2020, as of the end of Q2 2020, packaging M&A deals worth US$ 2.66bn were announced globally, marking a decrease of 74.1% year on year.

Top packaging industry M&A deals in Q2 2020

The top five packaging industry M&A deals accounted for 55.1% of the overall value during Q2 2020. The combined value of the top five packaging M&A deals stood at US$ 107.94 million, against the overall value of US $195.86 million recorded for the month.

The top five packaging industry deals of Q2 2020 tracked by GlobalData were:

The merger of Haesung Industrial and Hankuk Paper Manufacturing for US$ 42.64 million

The US$ 22.5 million acquisition of Ivirareta, Rudaco, S.A. Industrias Celulosa Aragonesa and TC Rey by SPS Walholding

Zibo Oumu Specialty Paper’s US$ 20.34 million acquisition of Shandong Warsaw New Materials

The US$ 13 million acquisition of Samcarsa De Mexico by Empresas CMPC

Gibo Plast’s acquisition of Dan-Hill-Plast for US$ 9.46 million

This analysis considers only announced and completed deals from the GlobalData financial deals database and exclude all terminated and rumored deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

It is the right time to support our high-impact reporting and authoritative and technical information with some of the best correspondents in the industry. Readers can power Packaging South Asia’s balanced industry journalism and help sustain us by subscribing.

– Naresh Khanna

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Editor of Indian Printer and Publisher since 1979 and Packaging South Asia since 2007. Trained as an offset printer and IBM 360 computer programmer. Active in the movement to implement Indian scripts for computer-aided typesetting. Worked as a consultant and trainer to the Indian print and newspaper industry. Visiting faculty of IDC at IIT Powai in the 1990s. Also founder of IPP Services, Training and Research and has worked as its principal industry researcher since 1999. Author of book: Miracle of Indian Democracy.

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