PFFC - January 2009 - (Page 36)

ECONOMIC OUTLOOK Figure 5 ity in the middle The middle market, the decrease transactions �� in large cap transacwere a nice mix tions brought valuaof both strategic �� tion multiples down. and financial �� The larger deals typbuyers. In fact, �� ically carry higher by Mesirow’s �� valuation multiples. count, roughly �� Figure 5 compares 50% of the �� EBITDA (earn2008 middle�� ings before interest, market transac�� taxes, depreciation, tions were com�� and amortization) pleted by private �� valuation multiples equity groups. �� for strategic and The middle�� financial packaging market private �� transactions durequity groups ing the first nine were able to �� months of 2007 stay active in �� and 2008. 2008 by putting more equity into their transactions. This has equity in middle-market capi- Uncertain Outlook Mergers and acquisitions allowed groups like Multital structures is detailed in essentially are driven by Packaging Solutions Group, Figure 4. confidence. If buyers and Rosmar Litho, Ampac, and Impact on Valuations lenders are unsure about the Clondalkin to close acquisiNotwithstanding stable activ- strength of the economy going tions. The increased use of �� forward, M&A volume surely will slide. That having been said, some of the recent highprofile transactions (Rock Tenn/Southern Container and International Paper/ Weyerhaeuser) will create significant shareholder value. Acquisitions remain a proven vehicle for supplementing organic growth and enabling cost reductions. Bill Hornell is a managing director in the Investment Banking Group at Mesirow Financial, Chicago, IL. He has completed more than 60 packaging merger and acquisition transactions. A significant majority of these transactions involved consumer packaging businesses. Contact him at 312-595-6176 or at bhornell@ mesirowfinancial.com; www.mesirowfinancial.com. John creates balance. Imagine what it takes to make a 2,000 lb roll purr like a kitten at 7,000 RPM. John knows. With computerized accuracy, John DeWindt achieves perfect balance on every roll. He starts with the shell. Then the entire roll. That’s how Webex ensures smooth roll performance at any specified speed. Want your line to purr? Call Webex. Get more than just a roll. Get precision roll performance. www.webexinc.com PFFC-ASAP 122 36 | JANUARY 2009 WWW.PFFC-ONLINE.COM 920-729-6666 http://www.mesirowfinancial.com 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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