Industry Update: Packaging M&A Update – June, 2018

June, 2018

For 2018 YTD, strategic buyers accounted for 86% of the Packaging M&A transactions with financial buyers making up the difference; during 2017, strategic buyers also accounted for approximately 82% of the transactions.

Select recent notable publicly announced M&A transactions:

– Novolex acquired The Waddington Group for $2.3 billion.

– Graphic Packaging International, Inc. acquired North America Consumer Packaging Business of International Paper Company for approximately $1.8 billion.

– DS Smith Plc (LSE:SMDS) acquired Indevco Management Resources, Inc. for approximately $1.15 billion.

– Loews Corporation (NYSE:L) acquired Consolidated Container Company LLC for approximately $1.2 billion.

– RPC Group Plc (LSE:RPC) acquired Letica Corporation for approximately $640 million.

– WestRock Company (NYSE:WRK) acquired Multi Packaging Solutions International Limited for approximately $2.3 billion.

Industry Update: Food and Beverage M&A Update – June, 2018

June, 2018

For 2017, total U.S. F&B announced transactions of 495 deals, exceeding 2016 levels of 380. 2018 YTD volume is at 158 transactions, less than the 235 transactions in the same period one year ago.

Select recent notable publicly announced M&A transactions:

– Frito Lay acquired Bare Snacks for an undisclosed amount.

– Mondelez International acquired Tate’s Bake Shop for $500 million.

– General Mills acquired Blue Buffalo for $8.3 billion

– Peakstone advises Gourmet Gift Concepts on sale of company to Hickory Farms for an undisclosed amount.

– Keurig acquired Dr Pepper Snapple Group for approximately $18.7 billion.

– Campbell’s acquired Snyder Lance for approximately $6.1 billion.

– Kellogg’s acquired Chicago Bar Company for approximately $600 million.

– Peakstone advises Market Fresh Produce on sale of company to Marquette Capital Partners for an undisclosed amount.

Industry Update: Food and Beverage M&A Update – June, 2018

June, 2018

For 2017, total U.S. F&B announced transactions of 495 deals, exceeding 2016 levels of 380. 2018 YTD volume is at 158 transactions, less than the 235 transactions in the same period one year ago.

Select recent notable publicly announced M&A transactions:

– Frito Lay acquired Bare Snacks for an undisclosed amount.

– Mondelez International acquired Tate’s Bake Shop for $500 million.

– General Mills acquired Blue Buffalo for $8.3 billion

– Peakstone advises Gourmet Gift Concepts on sale of company to Hickory Farms for an undisclosed amount.

– Keurig acquired Dr Pepper Snapple Group for approximately $18.7 billion.

– Campbell’s acquired Snyder Lance for approximately $6.1 billion.

– Kellogg’s acquired Chicago Bar Company for approximately $600 million.

– Peakstone advises Market Fresh Produce on sale of company to Marquette Capital Partners for an undisclosed amount.

Industry Update: Consumer and Retail M&A Update – June, 2018

June, 2018

For 2018 YTD, strategic buyers accounted for 79% of Consumer and Retail M&A transactions. During 2017, strategic buyers accounted for 62% of the transactions.

Select recent notable publicly announced M&A transactions:

– Vintage Investment Partners acquired Rent-A-Center for $1.3 billion.

– Marriott Vacations Worldwide Corp. acquired ILG Inc. for about $5.8 billion.

– Tenneco acquired Federal-Mogul for $5.4 billion.

– Peakstone advises Erehwon Mountain Outfitter on sale of company to Camping World Holdings, Inc. (NYSE:CWH) for an undisclosed amount.

– Arby’s Restaurant Group Inc. acquired Buffalo Wild Wings Inc. for approximately $2.9 billion.

– American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) acquired Metaldyne Performance Group Inc. for approximately $3.42 billion.

– BPS Direct, L.L.C. acquired Cabela’s Incorporated (NYSE:CAB) for approximately $8.67 billion.

– Circle K Stores Inc. acquired CST Brands, Inc. (NYSE:CST) for approximately $6.09 billion.

– Rye Parent Corp. acquired Panera Bread Company (NasdaqGS:PNRA) for approximately $7.66 billion.

Industry Update: Restaurant Industry Insight Spotlight on Fast Casual M&A Update – June, 2018

June, 2018

For announced transactions, Restaurant multiples saw a modest increase from 9.6x EBITDA in 2016 to 10.8x EBITDA in 2017.

Select recent notable publicly announced M&A transactions:

– Del Frisco’s acquired Barteca for approximately $330 million.

– Spice Private Equity acquired Bravo Brio Restaurant Group for approximately $100 million.

– Rhone acquired Fogo de Chao for approximately $450 million.

– Apollo acquired Qdoba for approximately $305 million.

– Arby’s Restaurant Group Inc. acquired Buffalo Wild Wings Inc. for approximately $2.9 billion.

– NRD Capital Management, LLC acquired Ruby Tuesday, Inc. for approximately $360 million.

Industry Update: Pet M&A Update – June, 2018

June, 2018

In 2018 YTD, strategic buyers accounted for 83% of the Pet M&A transactions with financial buyers making up the difference; during 2016, strategic buyers accounted for approximately 93% of the transactions.

Select recent notable publicly announced M&A transactions:

– Smucker’s acquired Ainsworth for approximately $1.9 billion.

– Hines Resource Group acquired Spectrum Brands for approximately $2.3 billion.

– General Mills, Inc. acquired Blue Buffalo Pet Products, Inc. for approximately $8.3 billion.

– The Riverside Company acquired Petstages for an undisclosed amount.

– The Riverside Company acquired Bionic for an undisclosed amount.

Deal Announcement: Peakstone Advises on Sale of Free-Flow Packaging International to Pregis

June, 2018. Peakstone served as the exclusive M&A advisor to Free-Flow Packaging International, Inc. (FP International) in connection with its pending acquisition by Pregis, LLC. The acquisition is expected to be finalized in the coming weeks, subject to customary closing conditions and regulatory review.

FP International has a 50-year history of providing a wide range of protective packaging solutions. Its well-known brands include the MINI PAK’R®, PRO PAK’R®, POWER PAK’R® and many other protective packaging products. The company was founded in 1967 by Arthur Graham, who pioneered the use of free-flowing interior packaging material. FP International has been transformed over the past two decades from a single-product company to a leading provider of protective packaging solutions with multinational operations.

FP International President Joe Nezwek said, “We’re excited to become a part of Pregis’ expanding protective packaging portfolio. This will enable us to continue FP’s 50-year commitment to innovation and outstanding customer service. As one company, we can accelerate our efforts to meet the evolving needs of our customers.”

Headquartered in Fremont, California, FP has five manufacturing facilities—two in the United States plus Germany, France and the Netherlands—supported by 360 employees. Pregis plans on continuing manufacturing operations in those locations.

In addition to the FP International transaction, Peakstone’s Packaging Investment Banking team has advised on many high profile and complex transactions in the packaging industry, including Duro Bag’s sale to Novolex, GMSP’s sale to Hoffmaster, Alden & Ott’s sale to hubergroup, Clarke Group’s sale to Red Oak Growth Partners and Pure Pulp’s strategic investment by Fabri-Kal. In recent years, members of Peakstone’s Packaging Investment Banking team have advised on over 30 completed transactions.

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. The team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.

For additional information about this transaction, contact:

Nicholas Clementi, Managing Director, 312-346-7300, nclementi@peakstone.com

Eric Dziedzic, Managing Director, 312-346-7314, eric@peakstone.com 

Stephen Sleigh, Managing Director, 312-346-7318, ssleigh@peakstone.com


About FP International 

FP International is a global leader of innovative protective packaging products and systems.  Now widely recognized for its sophisticated product design and customer-centric culture as well as its trail-blazing technology, FP International operates on three continents, providing interior packaging solutions to a wide array of industries, from automobiles to toys. For more, www.fpintl.com, www.minipakr.com.

About Pregis, LLC 

 Pregis LLC is a customer-driven solutions provider of innovative protective packaging materials, equipment systems and surface protection. As a material neutral company, the company works with its customers to find the right solution to solve their business challenges. Pregis serves a wide variety of consumer and industrial market segments including food, pharmaceutical, healthcare, medical devices, agricultural, e-commerce, retail, automotive, transportation, furniture, electronics, building, construction and military/aerospace. For more, www.pregis.com.

FP International Official Press Release: Click Here

Peakstone Closed Deal Announcement- Gourmet Gift Concepts Sold to Hickory Farms

Peakstone served as exclusive M&A advisor to Gourmet Gift Concepts in connection with its sale to Hickory Farms, a portfolio company of Modjule LLC, a private equity and venture capital firm.

 

 

Terms of the transaction were not disclosed.

For additional information please contact the following:

Nicholas Clementi, Managing Director, 312-346-7300, nclementi@peakstone.com

Eric Dziedzic, Managing Director, 312-346-7314, eric@peakstone.com

 

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.

Peakstone Closed Deal Announcement- Lamination Specialties Corporation Sold to Union Partners

March, 2018. Peakstone served as exclusive M&A advisor to Lamination Specialties Corporation (“LSC” or the “Company”) in connection with its sale to Union Partners. Founded in 1956 in Chicago, IL, LSC is a leading value-added North American manufacturer of electrical steel laminations for a variety of industries and applications. The Company’s state-of-the-art manufacturing facilities and broad product portfolio serve a wide range of domestic and international customers.

Union Partners is a hands-on, full-service metals and logistics company with integrated facilities located throughout the United States providing steel service centers and distribution, metals processing and logistics services. Founded by families with multi-generational experience in steel, real estate, and logistics, Union Partners prides itself on combining the integrity of family-owned businesses with the innovation of entrepreneurial ventures.

“Peakstone’s thoughtful guidance and dedication throughout the entire process were critical to achieving a very successful outcome that met all of our transaction objectives,” noted Mike Gibney, CEO of LSC. “We are excited about our new partnership with Union Partners and look forward to continuing to execute LSC’s strategic growth initiatives.”

Union Partners Press Release: Click Here

Terms of the transaction were not disclosed.

For additional information please contact the following:

Eric Dziedzic, Managing Director, 312-346-7314, eric@peakstone.com

Mark Horita, Managing Director, 312-346-7308, mhorita@peakstone.com

Cathy Jaros, Managing Director, 312-262-7735, cjaros@peakstone.com

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.

Peakstone Publishes Industry Reports

February, 2018. Peakstone has published eleven updated industry reports, which can be accessed through the links below.  We deliver sector knowledge, experience, and relationships to every client.  We welcome a chance to open dialogue with companies in these sectors to exchange information and viewpoints.

Automotive

Consumer & Retail

E-Commerce

Food & Beverage

Industrials & Manufacturing

IT Services

Packaging

Pet

Restaurant

Technology & Software

Transportation & Logistics

About Peakstone

Peakstone is a leading investment bank that specializes in mergers and acquisitions advisory and capital raising for middle market clients. Our team is comprised of senior investment banking professionals who have decades of experience and have executed hundreds of transactions totaling billions of dollars. For additional information, visit www.peakstone.com.