Williamstown, MA -- (SBWIRE) -- 04/30/2012 -- The 'Packaging Annual Deal Report' will help dealmakers to effectively and efficiently gain an in-depth understanding into deal activity in the global packaging industry in 2011.
- The packaging industry recorded a strong deal activity in 2011 with 708 transactions worth a total of US$73.2 billion.
- The number of deals in the packaging industry was highest in the first quarter of 2011, and decreased in the net three quarters of the year. Deal activity in 2011 was highest in February, while October registered lowest deal activity in terms of volume.
- The principal driver of deal activity was to achieve sustainability and growth through strategic expansion, with a primary focus on mitigating risks associated with dependence on domestic markets, traditional products, and services.
- Deals in the packaging industry were primarily undertaken with the objective of business expansion through inorganic growth to increase business scale. Many packaging companies chose mergers and acquisitions (M&As) for gaining operational synergy by combining technical capabilities, and adding new products and brands.
- In 2011, the packaging industry recorded a number of high value deals with a deal value equal to or above US$1 billion, primarily in the M&A, debt offerings, and PE/VC deal types.
- M&A transactions dominated the deal activity in the packaging industry in 2011, accounting for 70% of total deal volume.
- The US$9.7 billion acquisition of The Lubrizol Corporation, a specialty chemical company manufacturing ingredients and additives, by Berkshire Hathaway Inc., was the biggest M&A deal in 2011.
- In terms of capital raising transactions, equity and debt offering deals collectively accounted for 13% of total deal volume in the packaging industry in 2011. The year reported debt offerings worth a total of US$16.8 billion, which accounted for 23% of total deal value in the industry.
- The Asia-Pacific region reported most of the equity offerings in 2011, while North America dominated in terms of debt offerings.
- The PE/VC activity recorded 67 deals, while there were 50 partnership agreements in 2011. Most of the PE/VC transactions were from Europe.
- The year 2011 demonstrated an increasing deal momentum in the flexible packaging and packaging materials segment, while deal activity remained significant in the rigid packaging and packaging equipment and technology segments.
- Flexible packaging segment dominated the deal activity in terms of volume as well as value, followed by the packaging materials segment.
- The US$4.3 billion acquisition of Temple-Inland Inc. by International Paper Company was one of the largest M&A deals in the flexible packaging segment.
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Companies Mentioned in this Report: Berkshire Hathaway, The Lubrizol, Solvay, Rhodia, Reynolds Group, Graham Packaging, International Paper, Temple-Inland, S.Aled Air, Diversey, RockTenn, Smurfit-Stone Container, Clariant International, Sud-Chemie, , Berkshire Partners, Omers Private Equity, Husky Injection Molding, Svenska Cellulosa, Georgia-Pacific, Austria Metall, Morgan Stanley, HCP Holdings, Styron, Bilt Paper, Yueyang Paper, Jindal Poly Films, S.Andong Sun Paper, Groupe Lactalis, Balluteaud Emballages, Cibem, Grigiskes, Bank of America Corporation, Deutsche Bank AG, JP Morgan Securities Inc., BNP Paribas SA, The Royal Bank of Scotland Group PLC, Citibank, N.A., ICICI Securities Limited, Credit Agricole S.A., Morgan Stanley, Lazard Capital Markets, LLC, Bartlit Beck Herman Palenchar & Scott LLP, Amarchand & Mangaldas & Suresh A. Shroff & Co, SJ Berwin LLP, Kirkland & Ellis LLP, Simpson Thacher & Bartlett LLP, Debevoise & Plimpton LLP, Jones Day, Wachtell, Lipton, Rosen & Katz, Abrams & Bayliss LLP, Haynsworth Sinkler Boyd, P.A., Suzano Papel e Celulose, Conpacel, Fibria Celulose, Consorcio Paulista, Solo Cup, , Kaneka, Supreme Industries, The Coca-Cola, United Resource Recovery, Rexam, M-real, Cibem, Paper Mill Holding, Sanoatqalinqogozsavdo, San Miguel, San Miguel Yamamura Packaging, Zhengye International, S.Anghai Luxin Packing, EcoSynthetix, Sotech Packaging Machinery, Varahi, Flexituff International, Bluplast Industries, Fineotex Chemical, Youbisheng Green Paper, AMG Packaging and Paper, Icahn Enterprises, Inapa - Investimentos Participacoes e Gestao, SodaStream, Graphic Packaging, Flour Mills of Nigeria, LOCK&LOCK, JK Paper, Metabolix, Advanced Pharmaceutical Packaging, Zhejiang Great Southeast Packaging, UPM-Kymmene, International Forest Products, Zhongshan Rengo Hung Hing, Parekh Aluminex, Eco Plastics, Zhongshan Ren Hing Paper, Cereplast, , Sotech Packaging, Beverage Packaging, Packaging Dynamics, Sappi Papier, OCT Enterprises, Deluxe, Tianjin Building Materials, Gerresheimer, S.Andong Sun Paper, Bunge, Pacific Equity Partners, Svenska Cellulosa Aktiebolaget, Astorg Partners, Saverglass, Vision Capital, Bormioli Rocco, Banco Popolare, Sun European Partners, Kobusch-Sengewald, Pregis, H.I.G. Capital, Cytec Industries, Equita, CaseTech, ADCURAM, Deutsche Beteiligungs, Robbins & Myers, Promens, Advent Private, Integrated Packaging, Avantium, YXY technology, , Silecs International, Ramondin Capsulas, Gestion de Capital, Digiflex, Rajasthan Venture, PR Packagings, Re-PET, , Replenish, Nypro, Netstal, Glaroform, Ilsemann Automation, MOCON, Guelph Food Technology, Northern Technologies, INEOS, BASF, Sartorius Stedim, Sudpack Medica, Indorama Ventures, Sinterama, Dow Chemical, Mitsui, Shenzhen Beauty Star, Allied Solutions, Purac. "
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