Packaging Update: Second Quarter 2011
Deloitte Corporate Finance LLC
This quarter’s Packaging Update, produced by Deloitte Corporate Finance LLC (DCF),summarizes the most recent transactions within this industry along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
- During Q2 2011, announced deals in the packaging sector totaled over $16 billion. The increase in total deal value was largely driven by a spike in large mega-deals, including the announced acquisitions of Graham Packaging Company, Inc. ($4.4 billion), Temple-Inland Inc. ($4.2 billion) and Diversey Holdings Inc. ($4.3 billion).
- The quality of businesses coming to market has improved significantly alongside increased buyer appetite. As a result, average deal sizes and valuations have made impressive gains over the past year.
- Heightened demand and competition have created an attractive M&A marketplace for middle-market sellers in particular. Multiples on deals valued under $1 billion this year have been approximately 30% higher than $1+ billion deals.
Download the Packaging Update below.