Canadian Packaging

BMO Capital Markets Packaging Sector Merger and Acquisition Review


January 14, 2010
by Canadian Packaging Staff

BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group has released its fifth annual report on packaging mergers & acquisition (M&A) activity, entitled Mergers and Acquisitions in the Packaging Industry: 2009 Annual Deal Review

The report provides a comprehensive review of M&A in the packaging industry in North America as well as on a global basis over the past several years. The report provides an overview of reported M&A activity in 2009, examining M&A activity by sector, geography, acquirer type, size, and valuations. The report also provides a brief synopsis of each transaction announced during the year. In addition, the report examines packaging M&A trends over the past several years.

"The last year was the most challenging year for M&A activity in the packaging industry in recent history, affecting deal volume, valuations, and interest among all types of acquirers," notes Doug Lawson, managing director and head of BMO Capital Markets packaging practice.

"The challenging M&A market conditions that characterized 2008 worsened in 2009. The credit crisis and difficult economic environment resulted in a significant slowdown in packaging M&A activity among strategic and financial acquirers," Lawson adds. "However, the challenging conditions that plagued 2008 and 2009 have begun to improve and we believe that positive packaging industry fundamentals and the strong rationale for consolidation in the packaging sector will begin to spur a recovery in deal activity in 2010."

Highlights of recent packaging M&A activity reviewed in the report include:

To request a copy of the Mergers & Acquisitions in the Packaging Industry: Annual Deal Review or to receive The Converter, a monthly BMO newsletter which reports on the activities and trends shaping this industry, please visit www.bmocm.com/industry/us/industrials/packaging/default.aspx or send an e-mail to Doug Lawson or Laura Hubbard.