Trends in Packaging M&A

Chart 6 demonstrates that publicly-held packaging businesses, both paper and plastic, continue to enjoy healthy earnings multiples. These publicly held businesses, as they acquire earnings and related efficiencies, are able to capitalize them at the higher rates.

Acquirers have also benefited from liquid and low-cost credit markets. Chart 7 outlines the steady decline in high-yield rates over the last several years. Rates for investment grade issuers have demonstrated a similar pattern.