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Yahoo
22-07-2025
- Business
- Yahoo
More packaging firms attract buyers in M&A surge
Despite persistent inflation, lingering supply chain vulnerabilities, and mounting regulatory pressure, merger and acquisition (M&A) activity in the global packaging sector remained robust through the first half of 2025. A string of high-profile deals—ranging from megamergers to strategic tuck-ins—reflects growing investor appetite for firms that enable sustainable packaging, production automation, and regulatory compliance. Private equity groups and strategic buyers alike are pursuing assets that align with broader sustainability mandates and digital transformation. The sector's underlying strength continues to be driven by demand from food and beverage, e-commerce, and healthcare—industries that are increasingly reliant on reliable and efficient packaging solutions. Industry analysts expect further consolidation in areas like fibre-based packaging, circular materials, and smart labelling, as buyers seek operational synergies and access to greener technologies. Sustainability and automation drive deal interest Firms with strong environmental credentials are commanding premium valuations. From low-carbon substrates to closed-loop systems and energy-efficient production lines, packaging players offering climate-aligned solutions are leading the M&A conversation in 2025. Notably, Amcor's $8.4bn acquisition of Berry Global, finalized in April, signals the strategic value placed on sustainable plastic packaging and healthcare applications. The deal is expected to deliver $650m in annual synergies, largely through supply chain optimization and sustainability-led product development. At the mid-market level, Nefab Group's acquisitions of Embalajes Echeberria and Plasticos Flome in Spain expand its capabilities in corrugated and thermoformed sustainable packaging, aligning with growing demand for greener transit solutions in Europe. Automation is also front and center. ProMach's May 2025 acquisition of DJS Systems, a specialist in disposable foodservice packaging, reflects ongoing interest in equipment and turnkey solutions that help brand owners meet Extended Producer Responsibility (EPR) and Plastic Packaging Tax thresholds. Similarly, the merger of SGK and SGS & Co to form Propelis, a design and digital asset management platform, underscores the market's focus on digital packaging traceability and integrated workflow automation. Rising regulation reshapes deal priorities With regulations tightening across global markets—particularly in the UK, EU, and U.S.—dealmakers are increasingly prioritizing compliance capabilities and recyclability metrics. The impending rollout of UK EPR fees in October 2025 is reshaping domestic M&A strategy. Ahead of the implementation, Macfarlane Group's acquisition of Pitreavie Group in January provides access to recyclable corrugated and foam packaging expertise, with synergies in both food and industrial end markets. Regulatory uncertainty has also influenced valuations. Following DEFRA's revised fee structure, which controversially places higher per-tonne charges on some fibre-based formats, buyers are scrutinizing downstream cost exposures more closely. Strategic acquirers are increasingly factoring recyclability rates, sorting infrastructure compatibility, and overall carbon intensity into their investment models. Packaging subsectors see varied investment trends While the M&A market remains active overall, activity levels vary by subsector. Flexible packaging, pharmaceutical containers, and digitally enabled labels are seeing strong capital inflows due to their roles in product security, inventory management, and extended shelf life. In one notable deal, ALPLA's June acquisition of KM Packaging brought six European and U.S. sites into its portfolio, bolstering its position in food-grade film and flexible pouching. Meanwhile, Novvia Group's acquisition of Garrett Hewitt International in May marks a growing trend toward premium packaging in the beauty and fragrance sectors, which are under pressure to reduce virgin plastic use. Cross-border transactions are also increasing. International Paper's $9.9bn takeover of DS Smith, completed in January, strengthens its European corrugated presence and enhances access to recycling infrastructure. Likewise, Zeus Group's purchases of Empire Tapes and Rio Tinto Plásticos in June highlight interest in vertically integrated, multi-market players in the adhesives and secondary packaging space. In contrast, firms heavily reliant on non-recyclable or multi-material plastics have struggled to attract buyers, with several rumored deals put on hold or shelved due to compliance risks and poor ESG ratings. Defensiveness supports sector resilience Despite macroeconomic caution, packaging remains a relatively defensive sector, benefiting from structural demand in everyday essentials. That stability, combined with regulatory tailwinds and technology convergence, is helping sustain M&A activity at pace in 2025. According to RL Hulett, deal volumes climbed from 62 in Q1 to 69 in Q2, driven by strategic and PE interest across North America and Europe. Median EV/EBITDA multiples for strategic acquirers held around 7.5×, while private equity buyers pushed valuations closer to 15× in high-growth segments. With global buyers chasing sustainable scale, cost-saving automation, and compliance expertise, the packaging M&A surge is expected to continue into H2 2025—albeit with sharper focus and more selective capital deployment. "More packaging firms attract buyers in M&A surge" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
Amcor (AMCR) Offers Steady Dividends at an Affordable Price Point
Amcor plc (NYSE:AMCR) is included among the 13 Best Dividend Stocks to Buy Under $20. An automated assembly line producing a variety of packaging products. The recent merger between Amcor and Berry Global has resulted in a dominant player in the plastic packaging industry, presenting a promising investment opportunity fueled by expected synergies and consistent growth. Amcor plc (NYSE:AMCR), an Australian firm with a strong international presence, is set to nearly double its revenue through this deal, strengthening its position in both flexible and rigid packaging. The merged company is expected to gain substantial cost savings and scale benefits, positioning it significantly ahead of its nearest competitor in terms of size. The combined company is projected to increase its earnings per share by 15% each year through 2028, with a significant portion of that growth stemming from cost synergies that are expected to be well-executed. Amcor's successful history with past acquisitions like Alcan and Bemis, along with Berry's track record with RPC, adds credibility to its ability to realize these synergies. Amcor plc (NYSE:AMCR) holds a solid dividend history. The company offers a quarterly dividend of $0.1275 per share and has a dividend yield of 5.42%, as of July 21. It is one of the best dividend stocks as the company has raised its payouts for 41 years in a row. While we acknowledge the potential of AMCR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
Amcor plc (AMCR): A Bull Case Theory
We came across a bullish thesis on Amcor plc on by singletrack. In this article, we will summarize the bulls' thesis on AMCR. Amcor plc's share was trading at $9.66 as of July 11th. AMCR's trailing and forward P/E were 17.31 and 11.75 respectively according to Yahoo Finance. An old-fashioned food production line with employees packaging an assortment of products. The recent merger of Amcor and Berry Global creates a market leader in plastic packaging, offering an attractive investment opportunity driven by synergy realization and steady growth. Amcor, an Australian company with strong global exposure, and Berry together will nearly double Amcor's revenues and solidify its leadership in flexible and rigid packaging. The combined entity will benefit from significant cost and scale advantages, as it becomes 3-4 times larger than its next competitor. Flexible packaging, used for consumer staples like baby food and snack bags, will make up 60% of revenue, while rigid packaging, such as shampoo bottles and peanut butter jars, contributes the remaining 40%. Despite sustainability concerns about plastics, the products made by Amcor and Berry are highly specialized, harder to substitute, and essential for food safety and medical use. Moreover, Amcor leads the industry in R&D spending, driving innovation toward more recyclable and efficient solutions. Historically resilient through economic cycles, both companies demonstrated volume stability during the COVID pandemic and the Global Financial Crisis, reinforcing their defensive end-market exposure. While recent packaging volumes have been volatile, likely due to post-pandemic destocking, organic EBITDA growth has remained positive, supported by product mix shifts and cost controls. The merged company is expected to grow EPS by 15% annually through 2028, with nearly half of this growth coming from well-supported cost synergies. Amcor's proven acquisition track record (Alcan, Bemis) and Berry's success with RPC bolster confidence in synergy execution. Trading at just 11.5x forward EPS, with intrinsic value seen 50% higher, the stock offers an appealing risk/reward driven by scale, resilience, and strong synergy catalysts. Previously we covered a bullish thesis on Avery Dennison Corporation (AVY) by Serhio MaxDividends in May 2025, which highlighted the company's leadership in labeling and materials science and its strong dividend growth. The company's stock price has appreciated approximately by 0.35% since our coverage. Singletrack shares a similar view but emphasizes on Amcor's packaging scale and synergy-driven growth post its Berry Global merger. Amcor plc is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held AMCR at the end of the first quarter which was 29 in the previous quarter. While we acknowledge the potential of AMCR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. Sign in to access your portfolio
Yahoo
15-07-2025
- Business
- Yahoo
Amcor plc (AMCR): A Bull Case Theory
We came across a bullish thesis on Amcor plc on by singletrack. In this article, we will summarize the bulls' thesis on AMCR. Amcor plc's share was trading at $9.66 as of July 11th. AMCR's trailing and forward P/E were 17.31 and 11.75 respectively according to Yahoo Finance. An old-fashioned food production line with employees packaging an assortment of products. The recent merger of Amcor and Berry Global creates a market leader in plastic packaging, offering an attractive investment opportunity driven by synergy realization and steady growth. Amcor, an Australian company with strong global exposure, and Berry together will nearly double Amcor's revenues and solidify its leadership in flexible and rigid packaging. The combined entity will benefit from significant cost and scale advantages, as it becomes 3-4 times larger than its next competitor. Flexible packaging, used for consumer staples like baby food and snack bags, will make up 60% of revenue, while rigid packaging, such as shampoo bottles and peanut butter jars, contributes the remaining 40%. Despite sustainability concerns about plastics, the products made by Amcor and Berry are highly specialized, harder to substitute, and essential for food safety and medical use. Moreover, Amcor leads the industry in R&D spending, driving innovation toward more recyclable and efficient solutions. Historically resilient through economic cycles, both companies demonstrated volume stability during the COVID pandemic and the Global Financial Crisis, reinforcing their defensive end-market exposure. While recent packaging volumes have been volatile, likely due to post-pandemic destocking, organic EBITDA growth has remained positive, supported by product mix shifts and cost controls. The merged company is expected to grow EPS by 15% annually through 2028, with nearly half of this growth coming from well-supported cost synergies. Amcor's proven acquisition track record (Alcan, Bemis) and Berry's success with RPC bolster confidence in synergy execution. Trading at just 11.5x forward EPS, with intrinsic value seen 50% higher, the stock offers an appealing risk/reward driven by scale, resilience, and strong synergy catalysts. Previously we covered a bullish thesis on Avery Dennison Corporation (AVY) by Serhio MaxDividends in May 2025, which highlighted the company's leadership in labeling and materials science and its strong dividend growth. The company's stock price has appreciated approximately by 0.35% since our coverage. Singletrack shares a similar view but emphasizes on Amcor's packaging scale and synergy-driven growth post its Berry Global merger. Amcor plc is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held AMCR at the end of the first quarter which was 29 in the previous quarter. While we acknowledge the potential of AMCR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Yahoo
11-07-2025
- Business
- Yahoo
M&A trends in today's packaging market
Mergers and acquisitions (M&A) have become a defining feature of the packaging industry's evolution in recent years. With shifting market demands, increasing regulatory pressure, and a stronger focus on sustainability, companies are strategically combining forces to strengthen their positions. This article explores the key trends shaping M&A activity in packaging today, highlighting how consolidation, technology, and sustainability are driving deal-making. The packaging sector is experiencing significant consolidation as firms seek scale, operational efficiency, and geographic reach. Large deals such as Amcor's acquisition of Berry Global for $8.4 billion illustrate this drive to build diversified portfolios capable of serving a wide range of end markets, from food and beverage to healthcare. By merging, companies reduce redundancies and can spread research and development costs across a broader base, enhancing innovation capacity. Similarly, Novolex's $3.2 billion purchase of Pactiv Evergreen, backed by private equity, demonstrates how strategic acquisitions help businesses expand their footprint and improve supply chain integration. International Paper's acquisition of DS Smith in early 2025 for $9.9 billion further highlights a move towards combining paper-based packaging assets to tap into growing demand for recycled and sustainable materials. This wave of consolidation is partly a response to mounting operational pressures. Raw material costs, regulatory complexity, and the need for rapid product development encourage companies to seek partnerships that boost competitiveness. As a result, the packaging sector's M&A activity remains robust, with strategic buyers focused on scaling up their capabilities and broadening market coverage. Beyond size and scale, technology and sustainability have become central drivers of M&A decisions. Packaging companies are increasingly investing in automation, digitalisation, and smart packaging solutions to optimise production and meet evolving consumer expectations. These technological capabilities make companies more attractive acquisition targets, as buyers seek to enhance innovation pipelines and improve operational agility. Sustainability, in particular, has emerged as a vital factor shaping the sector's consolidation patterns. With growing regulatory requirements such as Extended Producer Responsibility (EPR) and the EU's Packaging and Packaging Waste Regulation (PPWR), companies are compelled to adopt circular economy principles and integrate recycled or renewable materials. Firms that demonstrate strong sustainability credentials, especially in biodegradable, compostable, or recyclable packaging, often command premium valuations. The strategic acquisition of businesses with sustainable packaging technologies allows larger players to accelerate their environmental goals and align with consumer preferences. This trend reflects the wider industry transformation, where environmental impact is not only a regulatory necessity but also a brand differentiator. The M&A market in packaging is also influenced by changes in investor behaviour and financing conditions. Private equity's involvement has lessened recently, with their share of total invested capital declining substantially in early 2025. This shift may be attributed to higher capital costs and a more cautious approach to deal-making amid economic uncertainty. However, private equity remains an important force for driving innovation and consolidation in niche segments. Meanwhile, strategic buyers are expected to maintain strong interest in acquisitions, focusing on deals that bring technological advancement, sustainability expertise, or new market access. The trend towards localised manufacturing and regional supply chain optimisation is also influencing deal rationale, with companies seeking to reduce complexity and improve responsiveness. Looking ahead, the packaging industry is poised for continued M&A activity driven by the need to innovate, comply with tightening regulations, and meet consumer demand for environmentally responsible products. Deal-making will likely remain a key strategy for companies aiming to stay competitive in a rapidly evolving market. The current landscape of packaging mergers and acquisitions reveals an industry in transition, balancing growth with sustainability and technological advancement. Consolidation remains a prominent theme, underpinned by the quest for scale and operational efficiency. At the same time, the growing importance of sustainable materials and smart packaging solutions shapes how companies evaluate potential acquisitions. With investor dynamics shifting, strategic buyers are poised to continue leveraging M&A as a tool for growth and innovation. For businesses and stakeholders in packaging, understanding these trends is crucial for navigating future opportunities and challenges in the sector. The ongoing evolution driven by consolidation, technology, and sustainability will ensure that M&A remains central to shaping the packaging industry's future. "M&A trends in today's packaging market" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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