Global packaging deals boost PwC in the Midlands
INCREASING confidence amongst global packaging businesses is leading to a renewed focus on merger and acquisition activity in the Midlands, according to PwC.
The firm said its corporate finance and transaction services teams had advised on a series of global packaging deals over the last year.
Completed deals include, amongst others, the sale of the pharmaceutical and branded divisions of Chesapeake to global alternative asset manager, The Carlyle Group, and the acquisition of plastic packaging manufacturer M&H Plastics by RPC, one of the world’s leading suppliers of rigid plastics packaging.
It said that in addition to these, a number of other transactions were also currently ongoing.
Matthew Tombs, deals partner at PwC in the Midlands, said: “These recent transactions demonstrate how the global packaging industry is returning to deal activity as a route to driving growth, and we are seeing continuing signs of interest in M&A in the local market.
“This trend complements the findings our 17th annual CEO Survey, which found that confidence levels among CEOs in the global packaging sector are growing, up by 12% year on year. But there is recognition within the sector that slow organic growth will increase the focus on strategic alliances, joint ventures and M&A.”
The global picture is said to be mirrored in the Midlands’ packaging sector. Over three quarters (77%) of senior executives in the region’s packaging industry who attended a roundtable hosted by the firm said they felt more confident about their business’ present outlook than they did 12 months previously.
When asked about driving growth, over a third (35%) said they saw market competition as the top challenge facing their business, with one in five (19%) identifying domestic M&A as a key growth opportunity. A quarter (23%) of those attending also saw international expansion as an important growth channel.
