Plastics Industry M&A Update

RESOURCE HIGHLIGHTS

• In Q1, the Producer Price Index (PPI) for Plastics Material and Resin Manufacturing increased 1.1%, driven by tighter supply conditions following a 6.2% drop in U.S. resin production in January.
• The median EV/EBITDA multiple for reported private equity deals in the Plastics sector increased to 8.8x (only one EV/EBITDA multiple was reported for PE buyers) in Q1 from 2.5x in 2024, while no Strategic EV/EBITDA multiples were reported during the period.
• M&A deal volume in the sector decreased 7.8% in Q1 to 119 deals from 129 in Q4 2024, and increased 15.5% from 103 deals in Q1 of the prior year.
• As a % of total capital invested in M&A transactions in the sector, PE participation increased to 27.7% in Q1 from 24.2% in 2024.
• North America was the most active region in Q1 with 51 deals. Most notably in North America was Nippon Paint Holdings’ $4.4 billion acquisition of AOC Resins, a Tennessee-based producer and supplier of resins and specialty materials used in the manufacturing of composite parts, in March 2025.