Supplier mergers and acquisitions on rise

Food & Drug Packaging, June, 2004

Mergers and acquisitions among packaging suppliers were up slightly in 2003, and the pace is expected to increase in 2004, according to a report from Piper Jaffray & Co.

There were 311 mergers and acquisitions announced in 2003 in the global packaging industry, with a total value of $14.3 billion. The great majority of the acquisitions were "strategic," that is, they were executed to gain or complement market share, as opposed to transactions made by private equity firms for investments.

Piper Jaffray's report predicts that merger and acquisition activity among packaging suppliers will remain strong this year due to several factors, including: the continuing economic recovery, improved access to capital and continued consolidation among plastics and fiber-based material manufacturers.

The report predicts that such mergers and acquisitions will "present significant value creation opportunities."

To request a copy of the report, "Mergers & Acquisitions in the Packaging Industry--2003 Year in Review and 2004 Outlook," call 312-920-2139 or e-mail douglas.j.lawson@pjc.com.