Plastics Industry M&A Update

RESOURCE HIGHLIGHTS

• The Plastics Material and Resin Manufacturing PPI index decreased 3.4% in Q3, driven by China’s slow economic growth, reported easing tensions in the Middle East, and record-high U.S. crude output.
• The median EV/EBITDA multiple for reported strategic deals decreased to 8.5x in 2024 from 12.6x in 2023, and the median EV/Revenue multiple for private equity deals decreased to 0.4x from 0.9x in 2023.
• M&A deal volume in the Plastics sector increased 3.2% in Q3 to 96 deals from 93 deals in Q2, and increased 20.0% from 80 deals in Q3 of the prior year.
• As a % of total capital invested in M&A transactions in the sector, PE participation decreased in YTD Q3 to 34.5% from 49.0% in 2023.
• Europe was the most active region in Q3 with 43 deals. Most notably in the European market was a $27.6 million investment in Hexagon Composites from an undisclosed investor in August 2024.