Portfolio Realignment, Sustainability Remain Top of Mind for Packaging M&A
ame to the conclusion that it offers few synergies with the rest of our portfolio, and is not core to our Packaging Sector’s growth strategy,” said Thomas Morin, President and Chief Executive Officer of TC Transcontinental.
Packaging Strategies has provided in-depth coverage of M&A activity in recent months, such as the planned merger of Amcor and Berry and the combination of Quadpack and PSB subsidiary Texen into a single group. Capstone also highlights that Extended Producer Responsibility (EPR) in the packaging sector has become more critical for sustainability initiatives worldwide. Producers are increasingly responsible for the treatment and disposal of post-consumer products, with U.S. regulations expected to be enforced in 2025.
Manufacturers in the packaging market have been adjusting their production strategies in response to changing trade policies and tariffs. For example, Canada has aligned its tariff structures with the U.S. for certain goods, prompting companies to consider Mexico as an alternative country for production. Trade agreements like the U.S.-Mexico-Canada Agreement (USMCA) have provided a favorable option for North American production that avoids trade disruptions and geopolitics tied to overseas manufacturing.
With the normalization of the packaging sector after the e-commerce spike during the pandemic, buyer confidence has increased when analyzing potential targets based on company performance, margin sustainability, and revenue predictability. This growing confidence, along with ongoing innovation in packaging sustainability, is expected to lead to a rise in M&A activity, attracting interest from private equity groups and strategic buyers.
To read the full report by Capstone Partners, visit their website. Capstone Partners has been a respected advisor to leading middle market companies for over 20 years, providing tailored investment banking and financial advisory services to help owners, investors, and creditors at every stage of the company’s lifecycle. For more information, you can visit www.capstonepartners.com.
