Plastics Industry M&A Update
- Resin prices decreased 1.5% during Q2, although remain elevated and are expected to persist through 2H 2023 due to ongoing supply chain disruptions, strong demand for plastics, and higher crude oil prices.
- The median EV/EBITDA multiple in the Plastics industry for reported strategic deals decreased to 7.5x in 1H 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 decreased 17.3% in Q2 to 62 deals from 75 deals in Q1 and decreased 49.2% from 122 deals in Q2 of the prior year.
- As a % of total capital invested in M&A transactions in 1H 2023, PE participation increased significantly to 55.5%, up from 19.8% in 2022.
- Europe was the most active region in Q2 with 31 deals. Most notably in Europe was Envalior’s $4.1B acquisition of DSM’s Engineering Materials Business in April 2023.