M&A Environment in 2012

A good example of a strategic acquisition can be found in the sale of Charlotte, N.C.-based Pinnacle Films, Inc., a $50 million per year producer of stretch wrap films. 321 Capital Partners led the bankruptcy auction in which five industry leaders attended a spirited auction that saw 28 rounds of bidding before a successful acquirer was crowned. Why did industry giants chase a bankrupt manufacturer of a commodity such as stretch wrap so vehemently? The answer is simple: scale and market share.