CHICAGO, IL -- Agamya Capital's research arm conducted a detailed analysis of M&A transactions over several years to identify drivers of strategic acquisitions as well as trends in valuation.
Strategic Acquisitions Have Recently Outnumbered Financial Acquisitions
- Strategic acquisitions accounted for 78% of packaging industry transactions in the last 18 months.
- PE backed packaging companies have also been active as strategic buyers, accounting for 16% of strategic acquisitions.
- In the last 18 months, Paper, Plastic, Label, and Flexible are the four sub-industries where most transactions happened.
- Among companies with up to $500M Enterprise Value, scale could give premium to valuation.
- The one significant outlier is “CSP Technologies”, which was acquired by Wendel, an investment firm with long-term hold. CSP Technologies received a high multiple mainly because of its patent-protected technologies, the worldwide leading position in the niche growing market of desiccant plastic vials for diabetes test strips, and its international manufacturing and customer relationships. Even though the company doesn’t have a significant scale, the growth potential is significant.
We believe four distinct aspects are driving strategic acquisitions:
Drivers
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About Agamya Capital
Agamya Capital invests in privately held companies and helps management teams overcome resource and capital constraints, and thereby capitalize on long-term and near-term growth opportunities. We work in partnership with portfolio companies to identify and implement actionable strategies to drive growth and operational performance. Our capital comes from US based family offices with substantial resources and networks.
Inquiries
312-277-0117
inquiry@agamyacapital.com
Agamya Capital invests in privately held companies and helps management teams overcome resource and capital constraints, and thereby capitalize on long-term and near-term growth opportunities. We work in partnership with portfolio companies to identify and implement actionable strategies to drive growth and operational performance. Our capital comes from US based family offices with substantial resources and networks.
Inquiries
312-277-0117
inquiry@agamyacapital.com