Global forest, paper and packaging deals insights: Q2 2019
Executive summary
After a three-year low in M&A activity in the first quarter of 2019, deal activity has picked up this quarter. Global forest, paper and packaging deal value and volume rose 174% and 39%, respectively. However, compared to YTD 2018, value and volume declined by 75% and 25%, respectively.
The lack of megadeals continues in 2019 contributing to lower deal value compared to 2018. Flexible Packaging and Miscellaneous Products was the most active category representing 81% and 53% of the value and volume this quarter, respectively.
Key trends and highlights
- In Q2 2019, deal value grew noticeably by 2.7x to $6 billion over Q1 2019. Deal volume also grew by 39% to 129 deals in the current quarter over the previous quarter.
- The increase in deal value in Q2 2019 is due to the Flexible Packaging and Miscellaneous Products category. Six out of the top ten deals are of this category, contributing ~$4 billion, i.e., 81% of total deal value.
- The average deal size increased by 91% to $94.5 million in Q2 2019 vis-à-vis Q1 2019. But for YTD 2019, the average deal size declined by 72% when compared to YTD 2018.
“Despite a pick-up in activity this quarter, macroeconomic uncertainty continues to influence M&A. This is pushing investors to be more strategically selective with their M&A objectives.”
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