Plastics Industry M&A Update

RESOURCE HIGHLIGHTS

• Resin prices decreased 2.0% during Q4, continuing the downward trend since peaking in June 2022.
• The median EV/EBITDA multiple in the Plastics industry for reported strategic deals increased to 12.6x in 2023 from 7.8x in 2022. There were no reported private equity EV/EBITDA multiples in 2023.
• M&A deal volume in the Plastics sector increased 33.8% in Q4 to 107 deals from 80 deals in Q3, but decreased 4.5% from 112 deals in Q4 of the prior year.
• As a % of total capital invested in M&A transactions in 2023, private equity participation increased significantly to 49.0%, up from 19.8% in 2022.
• Europe was the most active region in Q4 with 52 deals. Most notably in Europe was MinervaHub’s $31.5 million buyout of Interlinea2 in December 2023.