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PRIVATE EQUITY INVESTING
in Plastics & Packaging Companies
July 11, 2019 @ 8:00 am - 5:00 pm
Finding Exciting Plastics & Packaging Investments in Fragmented End Markets
Private Equity Investing in Plastics & Packaging Companies
For plastics and packaging companies, 2018 was a banner year for private equity investing. And already 2019 is off to a roaring start!
According to Plastics News, 2018 was the biggest year in the past five. Private equity firms were involved in 46% of all transactions, well above the 37% averaged in the five years before that. And 2019 took a giant step with the $4.4 billion Berry Global-RPC deal.
PE firms like the industries’ strong cash flows, low capital expenditures, recession-resistant end markets, and most of all, its fragmentation. With the largest companies accounting for less than 6% of overall revenues in 2018, and with customers increasingly seeking diversified solutions from plastics and packaging suppliers, PE firms see golden opportunities to consolidate.
But buy-and-build plays aren’t as simple as they once were. New technologies, sustainability concerns, and government regulations mean plastics and packaging companies often face higher costs, more competitive pressures, and lower margins.
When choosing where to invest, PE firms are looking carefully at —
- End markets that offer companies a chance for above-average growth, such as –
- Healthcare, which has above-GDP growth and has complicated packaging requirements. Packaging companies serving healthcare end markets can achieve valuations one to two “turns” higher than other packaging companies. For example — Genstar Capital has invested in Tekni-Plex which makes a wide range of medical packaging, tubing, and compounds.
- Food & Beverage, which is particularly dependent on plastic packaging to insure that products are kept safe and fresh. Atlas Holdings recently acquired California-based Saxco International, which makes rigid packaging for the wine, spirits, craft beer, and food markets.
- Automotive, where plastics are being used in innovative ways to help make cars safer and more fuel efficient, like MPE Partners-backed Plastic Components – a manufacturer of highly engineered and high precision injection molded components for mission-critical applications in the small engine and automotive end markets.
- Recycling & Sustainability–
- Companies want to invest in sustainable solutions, e.g.,
- Light-weight packaging that uses less plastic.
- Reverse waste logistics that recycle disposed packaging.
- Biodegradable plastics, e.g., coffee cups and snack bags made of materials that can be composted or recycled.
- Companies also want to understand how they may face new regulations or business initiatives aimed at decreasing single-use plastic, such as the recent decision by Nestlé, Unilever, and PepsiCo to phase in by 2025 packaging made from recyclable, compostable, and biodegradable materials with more recycled content.
- Technology innovation —
- The continued growth of ecommerce has created demand for protective packaging and inside-the-box systems that can handle complex channels of distribution.
- Companies are looking to better track recycling with improved data collection and analytics. Blockchain may offer the answer, with initiatives like one from Plastic Bank that runs on plastic collectors’ mobile phones, issuing digital tokens as plastic products are traded in.
- Mobile technology may also help in eliminating waste from plastic and packaging. U.K. beauty company Lush has an app that uses AI and product recognition to eliminate the need for packaging. Customers simply point their phones at Lush products to access information about ingredients.
Thursday, July 11, 2019
8:00am – 5:00pm
Midtown Manhattan, NY
Register now to gain valuable insights as 20-plus speakers
assess the outlook for plastics & packaging at
The Capital Roundtable’s all-day conference
on Private Equity Investing in Plastics & Packaging Companies
The conference takes place on Thursday, July 11, in Midtown New York City.
Three Key Reasons Why You Should Join Us
- Learn which plastics and packaging subsectors and end markets have the best prospects for growth
- Hear which sectors may be hurt by increased regulation and scrutiny around sustainability
- Understand how sustainable goals and e-commerce are spurring growth and innovation
- How LPs, customers, and regulators are looking at sustainability in this sector
- The prospects for plastics and packaging subsectors in an economic slowdown
- How consolidation is changing the exit market
- Various government policies to price externalities and estimate the true cost of plastic
- The best opportunities in packaging, including flexible, food & beverage, and healthcare
- Opportunities in high-quality food packaging
- The best opportunities in plastics, including film
- Opportunities in thermoforming and industrial plastics
- The outlook for injection molding
- Fragmentation in the “green” packaging market
- Trends in pricing of plastic resin and plastic materials
- Where historically high valuations are headed
- Lenders’ willingness to finance plastics and packaging deals
- What PE firms look for when building platform companies in packaging
- The impact of taxes, tariffs, and higher interest rates
Recent Middle-Market Plastics & Packaging Deals
- Wellspring Capital Partners acquired from Wind Point Partners a maker of high-performance transit packaging films named Paragon Films
- Charter Oak Private Equity purchased Quebec-based Licaplast Industries Emballages Inc., a flexible packaging firm serving the food and beverage markets in the U.S. and Canada.
- Graham Partners agreed to buy James L. Villa Inc., a Florida-based company that makes custom thermoformed and injection molded packaging for fresh food products in supermarkets, as an add-on to its EasyPak platform.
- Platinum Equity-backed WS Packaging agreed to take labelling company Multi-Color Corp. private in a deal valued at $2.5 billion, or 8.3x EBITDA.
- PPC Flexible Packaging, backed by Morgan Stanley Capital Partners, acquired Pewaukee, Wisconsin-based HFM Packaging, which provides high-speed die-cut labeling capabilities, re-sealable pouching technology, and engineering assistance using turnkey packaging solutions.
- Olympus Partners bought packaging company D.S. Smith’s plastics division for $585 million.
- One Rock Capital Partners agreed to acquire the plastics distribution business of Nexeo Solutions Inc.
- Sterling Group acquired Mentor, Ohio-based Polychem Corp., a family-owned maker of polyester and polypropylene strapping in the North American securement packaging industry. The company also operates a PET recycling facility which processes post-consumer PET.
- Rhone Capital agreed to sell Ranpak Corp., a Concord Township, Ohio-based maker of paper-based box packaging, to special purpose acquisition corporation named One Madison Corp. for about $950 million.
- One Equity Partners acquired Alltub Group, which makes aluminum and laminate specialty packaging for the cosmetics, pharmaceutical, and other end markets, from Aurora Resurgence.
Chris Cerimele founded Balmoral Advisors in early 2015. He is an experienced investment banker with approximately 25 years in investment banking, finance, and accounting. Chris has advised on more than $20 billion of middle-market chemical and industrial transactions. Representative M&A transactions have included
- the sale of Axial Corp.’s Solucor PVC additives business to Galata Chemicals
- the sale of Royal Adhesives to Arsenal Capital Partners
- the sale of Haverhill Chemicals to ALTIVIA Petrochemicals
- and the sale of SiVance to Milliken.
Representative corporate finance transactions have included securing growth equity for Melior Innovations, P2 Science, and debt refinancing for East West Copolymer.
Prior to starting Balmoral Advisors, Chris led the chemicals investment banking practices of mid-market investment banks Houlihan Lokey and Lincoln International. He was also a senior member of the chemicals team at Grace Matthews. Earlier in his career, Chris worked for Credit Suisse and KPMG. In 2010, he received a 40 Under 40 Recognition Award from The M&A Advisor. Chris holds a B.S. in accounting from the University of Southern California and an MBA from The University of Chicago Booth School of Business.
This Capital Roundtable conference in midtown, New York City, is all-business, all-targeted, all-designed to be a completely focused day of practical information and revealing insights about plastics and packaging companies. You’ll gain valuable insights from —
- Three informative panel discussions
- Two revealing keynote presentations
- Real-world perspectives from company investors
- Industry outlooks from noted sector experts
- War stories and lessons learned from experienced hands
- Chris Cerimele, Managing Partner, Balmoral Advisors
- Burt Alimansky,Chairman & CEO, The Capital Roundtable
Preliminary Speaker List
- Steve Alexander, President, Association of Plastic Recyclers
- Jim Berklas, V.P. & Head–M&A & General Counsel, Westfall Technik Inc.
- Matthew T. Bowersox, Managing Director, Jefferies LLC
- Roberto Buaron, Chairman & CEO, First Atlantic Capital
- Gary Denning, Senior Advisor, Balmoral Advisors LLC
- John Diggins, Partner, Platinum Equity
- Tom D’Ovidio, Partner ShoreView Industries
- Scott A. Finegan, Managing Director, Pfingsten Partners LLC
- Brian Flynn, Vice President, William Blair & Co.
- Joshua D. Goldman, Principal, One Rock Capital Partners LLC
- Ron Gonen, Chief Executive Officer, Closed Loop Partners
- Nicholas Mockett, Head–Packaging M&A, Moorgate Capital
- Michael D. Stovsky, Partner & Chair–Innovations, Info. Tech. & Intell. Property, Benesch LLP
- Damon Thome, Vice President, Mason Wells
7:30am – 8:30am
Networking & Registration & Breakfast
8:30am – 9:00am
Welcoming Remarks & Audience Self-Introductions
9:00am – 9:30am
Conference Chair’s Introduction —
Chris Cerimele, Balmoral Advisors
9:30am – 10:30am
First Panel —
Sustainable Plastics & Packaging Investing —
How to Future-Proof Your Portfolio
10:30am – 11:15am
Networking & Coffee
11:15am – 12:00pm
Morning Conversation —
From Plastic Bag Bans to 100% Recyclable Packaging —
How Governments & Big Business & LPs are Driving Sustainability Rules & Regulations
12:00pm – 12:30pm
Morning Keynote –TBA
12:30pm – 1:30pm
Networking & Luncheon
1:30pm – 2:30pm
Second Panel —
Which End Markets Have Outsized Growth Prospects?
A Sector-by -Sector Outlook – Healthcare? Food? Transportation?
2:30pm – 2:45pm
Networking & Dessert
2:45pm – 3:30pm
Afternoon Conversation —
Technologies That Are Disrupting Packaging —
Smart Packaging, 3D Printing, & Blockchain
3:30pm – 4:40pm
Third Panel —
Online Shopping is Easy, But Delivery is Hard —
New Demands from E-Commerce on Plastics & Packaging
Networking & Adjournment
Space at this conference is limited, so register as soon as possible to assure yourself a seat. To avoid disappointment, please contact Chris Agar today to confirm your attendance at 212-832-7300 ext. 0 or firstname.lastname@example.org.
Please note that Capital Roundtable limits the number of registrants from a single firm to three.
Best Rate – Early Registration
Save $300 off the standard fee of $1,495 when you register by Friday, May 24. Just $1,195.
Save $200 of the standard fee! Register by Friday, June 14, and the fee for the conference is $1,295.
$1,495 increasing to $1,595 day of conference, space permitting.
$1095 each until Friday, June 14, when you register two or more people to attend from the same company. This rate increases to $1295 each after Friday, June 14.
You can pay by credit card (using the links above or below) or by check. Mail your check and business card to: New York Business Roundtable Inc., 747 Third Avenue, Suite 200, New York, NY 10017.
Can’t attend but want to hear the program? You can buy the audio package along with the handounts.
This event is sponsored by:
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