Forest, paper and packaging deals: Branching out 2010 annual review

Forest, paper and packaging deals 2010 reviews deal activity in the FPP industries. We examine the rationale behind deal trends and key individual deals. This year we also continue our discussion of the evolution and growth of timberland as a global asset class. We look at the year under review, the context of the preceding years, and ahead to the future direction of deal-making in the sector.

Key findings 2010

  • There were more FPP deals in 2010 than in any other year since 2003. But average deal value plummeted to the lowest seen in the same period
  • Distress deals were common in response to the economic crisis
  • The long-awaited round of consolidation in Europe may have begun with a major deal towards the end of the year
  • Private equity returned to the sector - being the orchestrator behind US$2.8bn worth of FPP deals in 2010

Looking ahead – 2011 and beyond

Deal momentum is returning to the FPP sector and we expect to see a sustained upturn in deal value in 2011. A number of important themes are underpinning deal momentum:

  • consolidation, particularly long-awaited consolidation in Europe
  • security of fibre supply
  • geographical diversification into new, growth markets
  • repositioning of product and operational portfolios
  • a continuing flow of institutional money into timberlands