Plastics Industry M&A Update

RESOURCE HIGHLIGHTS

• The Plastics Material and Resin Manufacturing PPI index decreased 0.4% in Q4, driven by a slight increase in supply of plastic materials from non-OPEC producers and a decrease in demand, particularly in China.
• The median EV/EBITDA multiple for reported private equity deals decreased to 2.5x (only one EV/EBITDA multiple was reported for PE buyers) in 2024 from 8.0x in 2022 (the last year with PE EV/EBITDA multiples reported), and decreased for strategic deals to 8.9x from 12.6x in the prior year.
• M&A deal volume in the Plastics sector increased 34.4% in Q4 to 129 deals from 96 deals in Q3, and increased 20.6% from 107 deals in Q4 of the prior year.
• As a % of total capital invested in M&A transactions in the sector, PE participation decreased to 24.2% in 2024 from 49.0% in 2023.
• Europe was the most active region in Q4 with 68 deals. Most notably in Europe was Silgan Holdings’ $928.8 million acquisition of Weener Plastics Group in October 2024.