PFFC - January 2009 - (Page 35)

Figure 2 Figure 3 �� Figure 4 The use of �� equity in middle �� market capital �� structures �� increased �� in 2008. �� the economy Table I If buyers & lenders are about the going forward, M&A volume surely will slide. onstrates, packaging M&A definitely has been affected by the credit crunch. The bulk of the drop off in 2008 came from a significant reduction in large capitalization transactions. Table I lists packaging transactions in excess of $1 billion in value for the first nine months of 2008 Packaging M&A Activity and all of 2007. Over the past several years, It’s interesting to note there have been numerous landmost of the large cap transacscape-changing transactions tions in 2007 involved some in all segments of packaging. element of private equity or These include corrugated (IP/ leveraged finance. These are Weyerhaeuser), folding cartons obviously the types of transac(Graphic/Altivity), flexible packaging (Rank Group/Alcoa), tions missing in 2008. labels (Genstar Capital/Fort Dearborn), and rigid containers Middle-Market Activity (Rexam/O-I Plastics). Packaging transaction activity The industry has been remained robust in the middle characterized by strategic and market. Figure 3 compares total financial buyers operating packaging transactions for the within all major segments. first nine months of 2008 with However, as Figure 2 demthe same period in 2007. backed transactions. Most tallies showed a decrease of approximately 80% in 2008 large capitalization private equity transactions. As described later, the impact was not near as great in the middle market, but it was affected as well. JANUARY 2009 | 35 unsure strength of Packaging Transactions in Excess of $1 Billion 2008–First Nine Months Hicks Acquisition Co./ Graham Packaging Holdings Co. Intl. Paper/Weyerhaeuser Co., Containerboard, Packaging & Recycling Business Rank Investments Group/Alcoa Packaging The Blackstone Group/ Klockner Pentaplast GmbH & Co. Aldabra 2 Acquisition Corp./Boise Cascade Co., Paper & Packaging Assets Full Year 2007 Graphic Packaging Corp./ Altivity Packaging LLC Rexam plc/ROSTAR Co. Pactiv Corp./Prairie Packaging Bowater Inc./Abitibi-Consolidated Inc. Brookfield Asset Management Inc./ Longview Fibre Co. The Blackstone Group/ Catalent Pharma Solutions Inc. Source: Capital IQ and Mesirow Financial WWW.PFFC-ONLINE.COM Value ($ in Billions) $3.2 $6.0 $2.7 $1.8 $1.6 $1.7 $1.8 $1.0 $4.5 $2.1 $3.3 http://WWW.PFFC-ONLINE.COM

Table of Contents Feed for the Digital Edition of PFFC - January 2009

PFFC - January 2009 Contents First Glance Calendar of Events From the Editor Web Lines Process Management News Clips Narrow Web & Label Reporter Narrow Web & Label What’s New Products In-Mold Labels Cover: Ink Trends Economic Outlook Brand Security Show Preview What’s New Products Services Directory Classified Marketplace Equipment Buyers & Sellers Advertisers Index Experience Speaks

PFFC - January 2009

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