Target Report Analysis: A Cold Front Moves In – February 2016 M&A Activity

Is the market cooling off for companies in the printing, packaging and related industries? After the peak number of deals announced in January, there was a sudden and noticeable drop off in transactions. No mega-deals were announced in February, and with the exception of two deals by Luxembourg-based powerhouse ink supplier Flint Group, no big players were active.

Accentuating the decline in M&A transactions there was a slight uptick in industry-related bankruptcy filings, accompanied by the steady drumbeat of non-bankruptcy plant closures. While it does not appear that we should be battening down the hatches, we may be seeing at minimum a pause in industry transactional activity as buyers take a break while multiples cool off a bit.