Plastics Industry M&A Update

RESOURCE HIGHLIGHTS

• The Plastics Material and Resin Manufacturing PPI index ticked up 0.7% in Q2, but is still down 15.8% from the June 2022 peak.
• The median EV/EBITDA multiple in the Plastics industry for reported strategic deals decreased to 8.5x in 1H 2024, down from 12.6x in 2023. The median EV/Revenue multiple for reported PE deals decreased to 0.4x from 0.9x over the same period.
• M&A deal volume decreased 9.7% in Q2 2024 to 93 deals from 103 in Q1, but increased 50.0% from 62 deals in Q2 of the prior year.
• As a % of total deal volume in the Plastics sector, PE buyers’ share trended lower in 1H 2024 relative to strategic buyers down to 42.9% from 49.1% in 2023.
• Europe was the most active region in Q2 with 42 deals. Most notably in the European market was Worthington Enterprises’ $97.4 million acquisition of Hexagon Ragasco in June 2024.