State of the Industry: Global Consolidation in Packaging

Due to the highly fragmented conditions within the packaging sector, strategically motivated acquisitions have become particularly attractive (financial add-ons and traditional strategic acquisitions). More than 80 percent of transactions in 2010 were strategically motivated. By targeting either horizontal or vertical integration prospects, these acquisitions are growth oriented and often offer operational synergies. In this market, leading acquirers have the opportunity to be very selective in choosing their targets. A common motivation for recent strategic acquisitions has been the desire to expand geographic reach through companies with similar product offerings.