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Hardly a week goes by without Packaging Strategies<\/em> reporting on a merger or acquisition in the sector. While the completion of Amcor\u2019s combination with Berry<\/a> in April received a lot of attention\u2014and deservedly so\u2014we have reported on dozens of other mergers and acquisitions<\/a> so far this year.\u00a0<\/p>\n We recently turned to John Hart, Managing Director of PMCF Investment Banking, to put this M&A activity into perspective. How does the number of transactions so far this year compare to what we saw in 2024? Which subsectors of the packaging industry are seeing more M&A activity\u2014and why? When considering a sale, what are the respective advantages of selling to private equity or to a strategic buyer? John Hart answers these questions and more.<\/p>\n JH:<\/span><\/strong> <\/span>In 2024, the global packaging M&A market experienced a notable resurgence, with 322 transactions recorded\u2014an increase of 27 deals over the prior year. This growth was primarily driven by cross-border activity, which accounted for 53% of total volume, while domestic deal flow remained relatively flat. The fourth quarter marked a significant uptick in activity, likely spurred by interest rate cuts and improving macroeconomic sentiment. Despite the overall rebound, paper packaging M&A continued its three-year decline, totaling just 78 deals in 2024. However, segments such as specialty paper and corrugated packaging showed relative resilience. Strategic buyers remained the dominant force in the market, though private equity interest\u2014particularly in add-on and platform investments\u2014also gained momentum.<\/p>\n Looking ahead, early 2025 data suggests continued strength in the sector. The first half of the year saw 198 plastics and packaging deals completed, up from 180 in the same period in 2024. While large-scale transactions remain limited due to lingering macroeconomic uncertainty, smaller deals are driving much of the current growth. Overall, 2025 is shaping up to be a year of steady, diversified expansion in packaging M&A, with plastics and specialty packaging leading the charge and both strategic and financial buyers actively participating.<\/p>\n JH:<\/span><\/strong> In 2025, several packaging subsectors have emerged as focal points for both strategic and financial buyers. According to PMCF\u2019s latest research, Rigid Packaging, Protective Packaging, Paper Packaging, and Printing\/Labels have seen the most significant uptick in deal activity when compared to H1 2024. This surge reflects a broader trend of buyers targeting durable, value-added packaging formats that serve resilient end markets.<\/p>\n Private equity interest has remained strong, particularly in add-on acquisitions, which accounted for 48 deals in H1 2025\u2014up from 45 in the same period last year. Notably, Flexible Plastic and Paper Packaging have also attracted attention, with the latter benefiting from sustainability tailwinds and regulatory pressures on plastics.<\/p>\n The Food & Beverage end market has been especially active, reflecting a growing preference for packaging assets that offer both regulatory insulation and consistent consumer demand. Overall, the packaging M&A landscape in 2025 is being shaped by a blend of strategic consolidation and private equity\u2019s pursuit of resilient, growth-oriented platforms across select subsectors.<\/p>\n JH:<\/span><\/strong> When evaluating a sale, business owners must weigh the distinct advantages and implications of selling to a private equity firm versus a strategic buyer. Each path offers unique benefits depending on the seller\u2019s goals, company profile, and long-term vision. Strategic buyers\u2014often competitors or companies in adjacent markets\u2014typically seek synergies that can justify higher valuations. These buyers may offer immediate integration opportunities, cost efficiencies, and expanded market access, but they often require full ownership and may alter the company\u2019s culture or operations post-close.\u00a0<\/p>\n Private equity firms, on the other hand, are financial sponsors focused on value creation through growth and operational improvement. They often prefer owners to retain partial equity, enabling a \u201csecond bite of the apple\u201d upon a future exit. Private equity buyers are particularly attractive for owners seeking liquidity while maintaining involvement in the business, or for those looking to scale with institutional support.<\/p>\n Further, private equity buyers typically prefer the management team to stay on post-transaction to drive growth and value creation. In contrast, strategic buyers are more likely to integrate the business into their existing operations, which can allow for leadership changes or phased exits depending on overlap and synergy goals. Ultimately, the decision hinges on the seller\u2019s objectives: whether they prioritize valuation, legacy, continued involvement, or speed to close. A thoughtful assessment of these factors\u2014alongside guidance from experienced advisors\u2014can help owners align with the right buyer and maximize transaction outcomes.<\/p>\n JH:<\/span><\/strong> Business owners considering a sale or retirement should begin engaging with an M&A advisor well in advance\u2014ideally 12 to 36 months before their target exit. Early engagement allows for a more strategic and tailored sale process, including detailed company reviews, buyer fit assessments, and proactive issue resolution. This preparation not only increases the likelihood of a successful transaction but can also enhance valuation by reducing perceived risk and improving buyer confidence. Lastly, early planning also allows time to align the business\u2019s financials, operations, and growth story with market expectations\u2014critical for attracting premium buyers and avoiding surprises during due diligence.<\/p>\n JH:<\/span><\/strong> In the packaging industry, where buyer dynamics, valuation drivers, and operational nuances vary widely across subsectors, an M&A advisor\u2019s industry expertise can be the difference between a good outcome and a great one. Advisors with deep sector knowledge bring a nuanced understanding of materials, manufacturing technologies, end-market trends, and buyer behavior that generalist advisors often lack.<\/p>\n This expertise translates into tangible value throughout the sale process. Industry-focused advisors can position a business more effectively by highlighting the attributes that resonate most with strategic and financial buyers \u2013 whether it\u2019s a differentiated product line, a sticky customer base, or a scalable platform. They also maintain long-standing relationships with key decision-makers across the packaging M&A landscape, enabling them to run highly targeted, competitive processes that maximize valuation and deal terms.<\/p>\n In addition, advisors with packaging-specific experience are better equipped to anticipate and navigate sector-specific risks\u2014such as raw material volatility, regulatory shifts, or customer concentration\u2014and can structure deals to mitigate those risks while preserving value. Their ability to tailor sale processes\u2014whether full-scale auctions or proprietary negotiations\u2014ensures alignment with the seller\u2019s goals, confidentiality needs, and market timing.<\/p>\n Ultimately, industry expertise empowers advisors to deliver premium outcomes by combining strategic insight, buyer access, and process precision. In a market as specialized and competitive as packaging, that edge can be decisive.<\/p>\n<\/div>\nPS: What trends did you see in Packaging M&A in 2024? Do you expect those trends to change in 2025?\u00a0<\/span><\/strong><\/h4>\n
PS: Are there any specific subsectors of the packaging industry seeing more interest from buyers and\/or private equity?<\/span><\/strong><\/h4>\n
PS: Speaking of private equity, how should a business owner decide whether to sell to private equity or a strategic buyer?<\/span><\/strong><\/h4>\n
PS: If a business owner is considering selling their company, how soon prior to their ideal business sale and\/or retirement should they get in contact with an M&A advisor?<\/span><\/strong><\/h4>\n
PS: In what ways does an M&A advisor\u2019s industry expertise add value to a sale process?<\/span><\/strong><\/h4>\n