Q3 2023
Plastics Industry M&A Update
RESOURCE HIGHLIGHTS
- Resin prices increased 0.1% during Q3. Despite the slight quarterly increase, resin prices have continued a downward trend since peaking in June 2022.
- The median EV/EBITDA multiple in the Plastics industry for reported strategic deals increased to 10.7x in YTD 2023 from 7.8x in 2022. There were no reported PE EV/EBITDA multiples in 1H 2023.
- M&A deal volume in the Plastics sector increased 29.0% in Q3 to 80 deals from 62 deals in Q2 but decreased 18.4% from 98 deals in Q3 of the prior year.
- As a % of total capital invested in M&A transactions in YTD 2023, PE participation increased slightly to 49.3%, up from 48.8% in 2022.
- Europe was the most active region in Q3 with 33 deals. Most notably in Europe was Orion Infrastructure Capital’s $150.0 million investment in RM2 in July 2023.