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European Plastic PackagingM&A updateSpring 2012 Europe dominates European plastic packaging on the global M&A activity road to consolidation The plastic packaging industry in Europe is valued at €38 billion annually, accounts for a quarter of global supply and generated nearly half of all M&A transactions in the sector. This report highlights both “Plastic packaging is becoming the opportunities and a global affair, innovation is challenges for European ongoing as companies strive to companies in the sector. satisfy demanding customers and end users. These factors are driving consolidation” The key observations from Jean-Pierre Brice, Partner Highly fragmented our research: industry creating Over the past three years almost half to grow initial ‘platform’ investments consolidation of all global M&A deals in the plastic through bolt-on acquisitions, taking opportunities packaging sector took place in Europe, advantage of operational synergies. attracting both trade acquirers and financial investors. Cross-border deals accounted for 40% of all transactions in 2011. Much of this Whilst some segments of the industry, is attributable to the global sourcing Cross-border deals such as flexible food packaging, are requirements of major customers. dominated by a few large players the are a major feature Typical acquisition multiples have European industry as a whole remains of M&A highly fragmented. We expect remained at between 5x and 7x EBITDA consolidation trends to continue. over the past three years. However higher acquisition multiples have been Private equity firms have been paid for some companies, particularly significant investors. The common those offering niche products. theme has been for private equity firms
European Plastic Packaging M&A update Figure 1: Plastic packaging market structure Production Conversion Consumer Demand Recovery UK Electrical & Electronic 3.76m t (6.6%) (6.0%) Italy Automotive Plastic Types 4.90m t (8.7%) (8.0%) Recycling and Energy PS 4.7% Other European recovery 66% Other 20.7% PUR 6.7% 6.44m t (11.3%) Construction (21.0%) End Market PET 8.6% Other France 20% 7.53m t (13.3%) Food PVC 11.3% 51% HealthcarePP 18.6% Packaging 6% LDPE 11.5% Benelux (39.0%) Cosmetics 11.30m t (20%) HDPE 17.9% 5% PS (Polystyrene) e.g. DVD cases Beverage PUR (Polyurethane) e.g. Phone cases 18% PET (Polyethylene terephthalate) e.g. Plastic bottles Germany PVC (Polyvinyl chloride) e.g. Blister packs 22.67m t (40.1%) Other PP (Polypropylene) e.g. Stationery (26.0%) Disposed to Landfill 34% PE (Polyethylene) e.g. Plastic film 57 million tonnes 46 million tonnes Produced ConvertedSource: Mergers Alliance, Plastics Europe MRG, Rexam Raw material costs Industry trends Flexible packaging is being boosted from sectors like perishable and convenience foods, healthcare, and industrials. likely to rise in 2012 Packaging is the largest user of plastics in Europe, representing 39% Whilst the development in end user markets of the overall 46 million tonnes used is crucial to the industry’s performance in plastic conversion (see Figure 1). there are a number of other important considerations: Although there are some downsides to plastic packaging (e.g. raw material The softening in recycled plastic prices fluctuations) it also holds many inherent evidenced in H2 2011, partly as a result advantages over other packaging materials of weakening export markets, is likely to including flexibility, cost and its ability to reverse this year as exports start to adjust to new innovations and technologies. recover (see Figure 2). A similar trend Plastic now accounts for the largest share in virgin prices is also likely. of the packaging market followed by paper. EU legislation is significantly impacting Rigid packaging accounts for around 60% on recycling volumes. The updated of total production volume. The current directive on Packaging and Packaging growth in demand for rigid packaging is Waste coupled with the rising raw largely being driven by the beverage and material prices are increasing personal care markets. investment in closed loop processes. 2
European Plastic Packaging M&A update Whilst around half of all consumer The emerging markets of Eastern goods are packaged in plastic, this Europe, Asia and South America have Emerging markets are amounts to just 17% of all packaging all benefited from significant investment weight, a reduction of 28% in the last from larger international suppliers as target regions for 10 years. The significant investment opportunities for growth are sought. multinationals required to achieve these returns is a Evidence of this is seen in AMCOR’s further contributor to the consolidation growth in these regions of 18% p.a. in the sector. between 2000 and 2011. RPC Group and Constantia Flexibles are actively The rigid food and beverage packaging seeking mid-market opportunities in market is forecast to increase in these emerging markets. To remain importance, with growth rates forecast competitive European manufacturers at 3.7% over the next three years, need to ensure they are present in twice the industry average. these regions. PET is experiencing significant growth in volume in the consumer markets. PET’s functional and light weight Environmental factors characteristics should ensure steady influencing packaging growth (see Figure 3). It is also increasingly replacing segments materials that have traditionally been dominated by other materials for example glass beer bottles. Certain European consumer companies are moving towards sustainable packaging, with the bioplastics segment in particular experiencing increased demand. Cleaning products brand Ecover recently announced that all of its packaging will be made from plant based plastic made from sugarcane. Figure 2: Polymer price € per Figure 3: Share of total beverage tonne packing (%) 4020001800 3516001400 301200 251000 800 20 600 15 400 200 10 0 5 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 PET Glass Metal Others PET HPDE Blow moulding standard 2004 2009 2014 HPDE Injection moulding gradeSource: Mergers Alliance Source: Euro monitor, BPI 3
European Plastic Packaging M&A update Valuations reflect Current valuations companies in our index, which have robust earnings and dividend policies. consistent earnings The past decade has seen plastic The global recession put downward performance packaging valuations slightly exceed or pressure on valuations, however our track wider industrial market indices, a research has shown a marginal recovery reflection of the defensive nature of the over the last 12 months. Figure 4: Plastic packaging composite valuation index 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% -20.00% -40.00% -60.00% -80.00% -100.00% 2 02 03 3 3 05 05 5 6 06 07 07 7 8 08 09 09 9 0 10 11 11 1 04 4 01 00 00 00 00 00 00 00 00 01 00 20 20 20 20 20 20 20 20 20 20 20 20 20 20 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 n- n- g- n- n- n- g- n- n- g- n- n- g- g- ov ar ay ct ct ar ct ar ov ar ar Ja Ju Au Ja Ja Ju Au Ja Ju Au Ja Ju Au Au O O O M M M M M N M N Mergers Alliance Index MSCI World Industrial IndexMergers Alliance Index: Amcor, Rexam, DS Smith, Huhtamaki Oyj, MacFarlane Group, British Polythene Industries, Resilux NV, RPC Group, La Seda de BarcelonaSource: Capital IQ Europe alert to international PET recovers These quasi protectionist measures were effective in bringing down PET competition PET imports into Europe from Asia imports to around 0.5 million tonnes in 2011 with prices regaining much increased dramatically in 2009 to of the lost ground. reach 0.9 million tonnes, a historical high. Asian companies were able to escalate their exports at highly European PET imports (k tonnes) competitive prices due to their higher production efficiency and the lower 1000 costs of local raw materials. 800 Imports 600 This, along with slowing demand 400 in Europe, meant that PET prices 200 plunged – 33% below the current 0 price level. The EU initiated anti- 2008 2009 2010 2011 dumping laws to counteract the low Imports import prices and protect European companies. Source: PCI, BPI and Bloomberg. 4
European Plastic Packaging M&A update Figure 5: Top 15 global plastic packaging companies EBITDA EBITDA, Countries of 3 Yr Margin 3 Yr CAGR Operation Market Cap Revenue LTM EBITDA Revenue % % [LTM] Name HQ Country (Primary) (€) Million (€) Million (€) Million CAGR EV/EBITDA [LTM] (%) Rigid Flexible Comments Amcor Ltd. Australia Global (Australia, 6,916 9,932 990 6.1% 7.2x 10.0% 2.4% Dominate European flexible market. (ASX:AMC) the United States, and Singapore) Rexam plc United Global (US, 4,050 5,567 838 3.4% 7.2x 15.1% 4.2% Recently announced the sale of its (LSE:REX) Kingdom Brazil, Europe) plastic lid-making division to Berry Plastics for €267m. Bemis Company, Inc. United Global 2,530 4,096 494 5.5% 7.4x 12.1% 2.5% Acquired Finnish based Huhtamaki Oyjs (NYSE:BMS) States (sub-companies South American operations in 2009. in 13 countries) Berry Plastics United Global (US, Private 3,494 493 5.6% na 14.1% 12.4% Recently acquired Linpac Packaging Corporation States Brazil, Germany) Filmco from Linpac for €15m. Sonoco Products Co. United Global 2,409 3,444 423 6.8% 8.1x 12.3% 4.8% Has been acquiring across the supply (NYSE:SON) States (US, UK, China) chain in North America with deal value totalling €508m. DS Smith plc United Europe (UK, 1,255 3,218 270 7.4% 4.9x 8.4% 9.6% Planning integration of SCA. May divest (LSE:SMDS) Kingdom France, Belgium) plastic operations. Alpla-Werke Alwin Austria Global Private 2,900 na 16.1% na na na Has not engaged in M&A of late, has Lehner GmbH est focused instead on greenfield & Co. KG investments. Silgan Holdings Inc. United Americas, 2,173 2,593 353 8.9% 8.1x 13.6% 6.0% European acquisitions have been (NasdaqGS:SLGN) States Europe, Asia confined to metal packaging companies of late. Graham Packaging United US, Europe, Private 2,127 394 8.3% na 18.5% 5.6% In 2010 it acquired China Roots Packaging, Holdings Company States China its first manufacturing facility in China. Huhtamaki Oyj Finland Global (Europe, 973 2,064 203 2.5% 6.7x 9.9% -1.0% Sold its European rigid plastic consumer (HLSE:HUH1V) US, Australasia) goods operations to Sun Capital for €52m. Constantia Austria Global (Europe, 1,838 1,838 297 3.9% na 16.1% 4.3% Recently acquired Asas in Turkey and Packaging AG US, China) Alcans food packaging operations in Spain. AptarGroup, Inc. United US, France 2,642 1,780 322 8.6% 8.5x 18.1% 6.0% Acquired India based plastic packaging (NYSE:ATR) States company T.K.H. Plastics for €14m. FP Corp. Japan Global 880 1,285 194 6.8% 6.3x 15.1% 6.3% Has been active in acquiring packaging (OSE:7947) companies in Japan and China. Linpac Group United Global Private 1,231 108 -0.4% na 8.7% 5.2% Has been divesting its non-core operations Limited Kingdom to both trade and financial buyers of late. RPC Group plc United Europe 1200 1,105 122 9.4% 8.3x 11.1% 23.6% After its acquisition of Superfos Industries (LSE:RPC) Kingdom it is known to be seeking further acquisitions in Europe. Companies with disclosed revenue onlySource: Mergers Alliance, Capital IQ 5
European Plastic Packaging M&A update AMCOR dominates Trade buyer activity years they have made three acquisitions: Superfos Industries; DM Plast; and MOB SAS. flexible markets Over 100 transactions were completed in the past 18 months. Deal volume for The acquisition of Denmark based 2011 equalled the deal volume for 2010 Superfos for €240m gives RPC access and surpassed the lows of the to a variety of markets including Eastern recession. Europe and Scandinavia. RPC is known to be seeking further acquisitions to The common theme over the past two expand its pan-European operations. years has been for the medium to large sized companies to buy up smaller players The most high profile distressed sales to achieve their growth initiatives. occurred in 2009, including Canal Corporation (formerly Chesapeake The ‘serial acquirers’ in Europe have often Corp) and Budelpack, and failure still been the bigger companies, such as RPC occasionally occurs in the small to mid and Constantia Packaging (PE owned), sized market. LIR Packaging, which seeking to strengthen their position in the produces cosmetic product packaging production and technology chain, grow and Sedis, the French confectionery market share, ‘follow’ their clients and pastry packager have both recently geographically and react to the ‘bulking’ announced insolvency proceedings. trends of the larger global players (see This creates opportunities for ‘value’ Figure 6). and turnaround acquirers. M&A activity demonstrates two key themes; Analysis of plastic packaging industry the consolidation taking place within deals over the last decade shows that Europe; and the opportunities arising from the majority (58%) of acquisitions are distressed situations as a result of the made of direct competitors. Of the other pressures of operating in these markets. targets: 13% are distributors; 13% printing companies; 8% competitors in The largest deal of the past four years Majority of different sectors (majority being paper involving a European target was packaging); and 8% are of other completed by an Australian buyer. acquisitions are of companies (e.g. recycling plants). This Amcor, the worlds largest manufacturer shows clear consolidation strategies direct competitors of plastic bottles, purchased Alcan’s and that moves into more peripheral flexible packaging business in 2010 for sectors are less common. €1.5bn giving Amcor c. 25% market share and further consolidating flexible packaging in Europe. Highly acquisitive, Amcor has also bought smaller mid-market companies such as Italian based B-Pack Due (€45m). European flexible companies have reacted to Amcor’s increasing dominance by making acquisitions of their own, with Constantia being one “Superfos was a significant of the more prominent buyers. They acquisition for RPC and was acquired Asas in Turkey (sales of €63m) and Alcan’s food packaging operations consistent with our current in Logrono and Burgos, Spain. strategy of growing the business In rigid plastic packaging RPC Group organically and through acquisition” has also employed M&A to meet their Jamie Pike, Chairman at RPC growth ambitions. During the past four6
European Plastic Packaging M&A update Figure 6: Selected European plastic packaging deals Deal Value Date Target Description Plastic Type (Target) Buyer (€’m) Jan-12 Geka (Ger) Cosmetics packaging Rigid 3i (UK) ND Plastics and paper Jan-12 SCA Packaging (BE) Flexible and Rigid DS Smith (UK) 1,650 consumer goods packaging Plastic returnable One Equity Partners Jan-12 Linpac Allibert (UK) Rigid ND transit packaging LLC (USA) Johnsen & Jorgensen Plastic and glass Pont Packaging Oct-11 Flexible and Rigid ND Group (UK) packaging (NL) Industrial packaging Aug-11 Pack2Pack (BE) Rigid Greif Inc (USA) ND manufacturer Plastic packaging Coral Products Aug-11 Interpack (UK) Rigid 5 distributor plc (UK) Plastic products Constantia packaging Aug-11 ASAS (Tur) Flexible ND manufacture AG (Aut) Pharmaceutical primary Phillips Plastics Jul-11 Medisize Corporation (Fin) Flexible and Rigid 100 packaging Corporation (USA) Rexam Plc, Beverage Beverage plastic Berry Plastics Jul-11 and Speciality Closures Rigid 251 packaging Corporation (USA) Business (UK) Life sciences plastic Thermo Fisher May-11 Sterilin (UK) Flexible and Rigid ND packaging Scientific, Inc (USA) Pannunion Packaging Production of plastic Sun Capital May-11 Rigid 36 Ltd (Hun) packaging materials Partners (USA) Flexible plastic packaging Apr-11 Atlantis-Pak Co Ltd (Rus) Flexible Agrokom Group (Rus) 73 for meat products Britton Group Flexible packaging group, Sun European Apr-11 Flexible 101 (UK) plastic and other materials Partners, LLP (UK) Dec-10 CFS B.V. (NL) Packaging equipment Flexible and Rigid GEA Group AG (Ger) 435 Superfos Industries Injection moulded rigid Dec-10 Rigid RPC Group plc (UK) 240 (Den) packaging Nampak Cartons (now HDPE packaging for food Platinum Equity Dec-10 Rigid 77 Contego Packaging) (UK) and drink (USA) Bilcare Research Aug-10 Pharmaceutical packaging Flexible and Rigid Bilcare GmbH (Ger) 100 (Ger) Cosmetics and personal Sun European Jul-10 Albéa (Fra) Flexible and Rigid 110 care packaging company Partners, LLP (UK) Packaging and Jan-10 CV Flexible Packaging (Ger) Flexible packaging Flexible ND Technology Ltd (UK) Silver Fleet Jan-10 Kalle (Ger) Plastic sausage casings Flexible 213 Capital (UK) Next Wave Ventures Nov-09 Petainer (Swe) Eco PET packaging Rigid 18 WHEB VENTURE (UK) Constantia Packaging Packaging holding One Equity Partners Oct-09 Flexible 1,104 AG (Aut) company LLC (USA) Majority of Alcan Plastic, aluminium Aug-09 Flexible and Rigid Amcor Ltd (Aus) 1,497 Packaging Businesses (Sui) and packagingSource: Capital IQ, Corpfin 7
European Plastic Packaging M&A update RRP a key target for multinationals ‘Retail Ready Packaging’ Retail Ready Packaging (RRP) or shelf-ready packaging is designed to RRP penetration by country be easily placed on the shelf without the need for unpacking or repacking and is typically made up of rigid plastic, fibreboard or corrugated board. RRP is recognised as delivering higher efficiency in the supply chain and this segment is expected to grow significantly across continental Europe with a tonnage CAGR of 6%. While the UK and German markets already have high penetration rates, Red: High penetration of RRP most of continental Europe is still a Green: Medium penetration of RRP relatively immature market and is Blue: Developing RRP where most of the growth will take place. Source: igd.com Plastic packaging a Private equity There are two models in evidence in the mid-market:target sector for some investment PE employ buy and build strategies private equity houses Since 2009 a fifth of all European (building up established companies through smaller bolt-on’s) to create plastic packaging deals have had value for their ‘mature’ companies. private equity participation. A large proportion of higher value deals have Sun Capital for example has assembled been completed by financial investors. a large portfolio of European plastic packaging businesses having made Global private equity investment in seven mid-market acquisitions in Private equity firms Europe has been broad and has had an Europe since 2007. Their portfolio now impact in consolidating both the rigid have backed buy & and flexible market. The most active includes Kobusch-Sengewald GmbH, Unterland, Britton Flexibles, Betts build strategies firms include One Equity Partners, AB Global, Albéa and Acorn SAS. Traction, Sun Capital and Platinum Equity. Deal values have ranged from By combining existing affiliated portfolio €10m to over €1bn. companies Sun Capital has created a pan-European flexible packaging Although their focus has been primarily specialist, Britton Group, and a pan- on consumer goods (FMCG) there has European rigid packaging specialist, been rising involvement in industrial and PACCOR. Annual turnover of the commercial end markets. combined businesses will be approximately €680m.8
European Plastic Packaging M&A update PE firms are also focusing on niche Financial buyers have also been keenly plastic packaging companies. focused on the plastic packaging Private equity machinery segment with a notable Good examples of this included the interest in the Italian market. Activity targeting machinery Next Wave Ventures and WHEB included PE house IGI SGR acquiring segment Ventures acquisition of Swedish eco Italian based plastic film machinery friendly PET specialists Petainer for specialists Gruppo Fabbri for €40m in €18m and Silver Fleet Capital’s 2011. Meanwhile the Chinese-European acquisition of Germany based Kalle, PE fund Mandarin Capital Partners an innovator and producer of flexible acquired a minority stake in one of the plastic sausage casings (€213m). The leading global manufacturers of growth strategy for both these private machines for plastic packaging, equity funds is to invest in companies Industria Macchine Automatiche, that offer innovative and value adding for €30m. solutions.Prospects for M&A As well as the traditional markets we expect a new wave of acquisitions Adaptability drivingand the industry in Eastern Europe where flexible packaging is experiencing an growth in plasticThe whole plastics packaging industry average 6.2% sales growth. packagingis closely linked to economic growth The increasing demand for recycledand consumer confidence. and biodegradable products as well a focus on the afterlife of a packageAs much of Europe is still being affected by should also encourage verticalsovereign debt issues it is inevitable that the integration by firms looking toindustry’s growth prospects in the near term expand their product portfolio.will be affected. Nevertheless, the fact thatthe sector exhibits a low level of demandvolatility should ensure steady growth inthe medium term. Looking ahead, the high growth in demand for both rigid and flexible plastic packaging – as FMCG companies look for the more versatile options to glass and metal – will encourage acquisitions as businesses seek to meet customer’s demands. In the flexible market, Amcor/Alcan’s industry dominance will continue to drive consolidation as companies “Plastic packaging in Europe acquire to compete. is still a fragmented market. We are constantly evaluating opportunities in new markets and new product lines” Michael H. Kalb, Senior Managing Director, Sun European Partners 9
European Plastic Packaging M&A update The ten largest transactions comprised Almost half of all transactions were c.73% of the total value over the past cross-border in 2011. The steady rise in four years. If you exclude these larger cross-border activity since 2009 is likely deals, average deal size has been to continue as companies look to build below the €50m marker indicating that scale, lower transport costs, increase the mid-market has experienced the market share and expand their most activity. Due to the still fragmented geographical footprint. nature of the market we expect this Specifically, we expect European trend to continue. players to buy other European We expect that some of the larger deals companies as they seek to consolidate in the future will be in the form of the big the market and cover any ‘blind spots’ diversified players divesting either part while US players will look to take or all of their plastic packaging advantage of the challenging macro operations. This is likely to include conditions in Europe, surveying Rexam’s personal care plastic companies with high potential. packaging business and DS Smith’s entire plastic division. Contacts Specialist advice on call… For information on sector trends, valuations and corporate finance advice in plastic packaging Leonardo Antunes Bart Jonkman Managing Director, Brazil Managing Partner, Netherlands Telephone: +5521 3873 8000 Telephone: +31 73 623 8774 Email: email@example.com Email: firstname.lastname@example.org Jean-Pierre Brice Piotr Olejniczak Partner, France Director, Poland Telephone: +33 148 246 300 Telephone: +48 22 236 9200 Email: email@example.com Email: firstname.lastname@example.org Markus Kluge David Wolfe Director, Germany Senior Partner, Russia Telephone: +49 69 97 4030 78 Telephone: +7 495 937 5855 Email: email@example.com Email: firstname.lastname@example.org Ankur Gupta Igor Gorostiaga Manager, India Partner, Spain Telephone: +91 11 4617 0860 Telephone: +34 944 352 311 Email: email@example.com Email: igorostiaga@Norgestion.com Piero Manaresi Richard Sanders Partner, Italy Partner, United Kingdom Telephone: +39 051 59 47 309 Telephone: +44 121 654 5000 Email: firstname.lastname@example.org Email: email@example.com Owen Hultman Doug Usifer Executive Vice President, Japan Managing Director, USA Telephone: +81 3 6895 5521 Telephone: +1 (802) 658 7733 Email: firstname.lastname@example.org Email: email@example.com
European Plastic Packaging M&A updateCountry focus M&A Benelux: Spain:European cross-border transactions have been Despite a highly fragmented market in Spain, M&Acommonplace of late, and includes notable transatlantic activity has been moderate and outbound deals fewinterest in the Benelux region. US-Benelux deals included and far between. Distressed macro-conditions andGreif, Inc acquiring industrial packaging specialists credit restrictions have contributed to this. There areLigtermoet and Alpha Plastics acquiring PET specialists however opportunities to consolidate the market forSmartPET. those with strong balance sheets. France: INBOUND INBOUND INBOUND INBOUNDM&A activity has evolved around companies looking to INBOUND INBOUND 56% 60% INBOUND INBOUND INBOUND 63% INBOUND 56% INBOUND INBOUND INBOUND INBOUND 56% 77% 64% 60% INBOUND INBOUND 75% INBOUND INBO 60% 64% 63% M&A M&A 77% 64% 63% 75 M&A M&A 77%increase their product offering or increase their market 75% Activity Activity M&A M&A M&A M&A M&A M&A Activity M&A M&A Activity Activity Activity Activity M&A M&A M&A M& Activity M&A M&A Activity Activity Activity Activityshare. Regardless of their intentions, companies have Activity Activity Activity 44% Activity 40% 23% 36% Activity 37% Acti 44% 40% OUTBOUND 44% 40% 25%been reluctant to overpay for fixed assets. 23% OUTBOUND OUTBOUND 36% 37% 25% OUTBOUND OUTBOUND OUTBOUND OUTBOUND OUTBOUND 23% OUTBOUND OUTBOUND 36% OUTBOUND OUTBOUND 37% OUTBOUND 25 OUTBOUND OUTBOUND OUTBOUND OUTBOUND OUTBO INBOUND INBOUND INBOUND INBOUND 56% 60% INBOUND 63% INBOUND Germany/Austria/Switzerland: 77% 64% 75% M&A M&A Activity M&A M&A M&A M&A ActivityPrivate equity investment has been broad over the past INBOUND Activity Activity Activity Activity 56% 44% INBOUND 40% INBOUND 36% INBOUND 37% INBOUND18 months. Deals include cosmetics packaging firm 60% OUTBOUND INBOUND 23% 63% 64% OUTBOUND 25% M&A M&A 77% 75% OUTBOUND OUTBOUND OUTBOUND OUTBOUNDGeka acquired by 3i and Bayern LB’s PE division’s Activity Activity M&A M&A Activity M&A Activity M&A Activity Activityacquisition of a majority stake in Rebhan for an 44% OUTBOUND 40% OUTBOUND 23% 36% 37% 25% OUTBOUND OUTBOUND OUTBOUND OUTBOUNDundisclosed amount. INBOUND INBOUND INBOUND INBOUND Italy: INBOUND INBOUND 56% 60% INBOUND INBOUND 63% INBOUND 56% 60% INBOUND INBOUND 77% 64% INBOUND 75% M&A 77% 64% M&A 63% 75%In one of the more notable trade deals of 2011 high density Activity M&A M&A Activity Activity M&A M&A M&A M&A Activity M&A Activity M&A Activity M&A Activity M&A Activity Activity Activitypolyethylene specialists Fustiplast was acquired by Dutch 44% 44% Activity 40% 23% Activity 36% 37% 25% OUTBOUND 40% OUTBOUND 23% 36% OUTBOUND 37% OUTBOUND 25% OUTBOUND OUTBOUNDindustrial packaging company Greif International Holding BV. OUTBOUND OUTBOUND OUTBOUND OUTBOUND OUTBOUND OUTBOUNDFustiplast generated revenues of €472m in 2010. Poland: United Kingdom:Although transactions have stalled recently we expect Over a third of all privately owned plasticthe high growth domestic plastic packaging market to packaging companies in the UK are ownedencourage an upswing in M&A activity over the next by owners/managers approaching retirement.18 months. We expect them to drive M&A activity.Plastic packaging companies by country (%) 12% France 30% Germany 10% Italy Netherlands Spain 8% UK 4% Poland 4% Rest of Europe 18% 14%Source: Capital IQ Report edited by Andre Johnston, with special thanks to Stefan Cooksammy 11
International corporate financeMergers Alliance is a group of award winning corporate financespecialists who provide high quality advice to organisations who requireinternational reach for their M&A strategies. Over 250 transaction professionals based across Dedicated industry sector teams, with proven every key economic location around the world track records and experience 42 office locations, covering the Americas, Europe, Your local senior corporate finance advisor will Middle East, Africa, Asia and Australasia always be your point of contact, connecting you to our partnershipGlobal coverage Australia Finland Poland Austria France Russia Belgium Germany Singapore Brazil India South Africa Bulgaria Italy Spain Canada Japan Sweden China Luxembourg Switzerland Colombia Mexico Turkey Czech Republic Netherlands UK Denmark Norway USA Stas Michael Andre JohnstonContact Us... Business Manager Research Manager Direct Line: +44 (0) 20 7881 2990 Direct Line: +44 (0) 20 7881 2967 E: firstname.lastname@example.org E: email@example.com www.mergers-alliance.com