Pöyry Capital's Quarterly European Pulp, Paper and Packaging Update - AFRY
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Pöyry Capital’s
Quarterly European
Pulp, Paper and Packaging
Update
Welcome to the latest edition of the Pöyry
Capital Newsletter. In this edition we focus
on the potential medium-term impact of the
COVID-19 pandemic on the forestry, pulp, paper
and packaging industry and potential impact on
Mergers and Acquisitions in the next few months.
(At this difficult time saying anything sensible
about the short term is almost impossible.)
In many countries the paper and packaging
industry has been classed as “essential” or of
“national security interest” and has therefore
been encouraged to continue operations while
ensuring the safety of its people. Of course, in
some cases the products being made are of
acute importance today.
FOREST PRODUCTS Pulp and Dissolving Wood Pulp in Europe and North America will
Panels, construction materials, After a sharp decline in prices from likely be muted for some time with
furniture around the end of 2018, things started a consequential impact on DWP
The outlook appears difficult. to stabilise in Q4 2019. At the start of prices. China is a possible beacon
Construction projects currently in 2020, the mood was positive and there of hope if the economy is able to
progress may continue (although this was even some hope that prices might recover quickly to pre-crisis levels.
is a topic of some debate as we write). increase. The mood was lifted further by
– The pressure on DWP prices may be
However, new large-scale construction the Phase 1 trade deal signed by China
exacerbated by the low oil price which
projects are likely to be put on hold and the US in mid-January (feels like
should cause polyester prices to fall.
due to social distancing, other mobility an age ago, doesn’t it?). So what can we
restrictions, and lack of people (through say now?
illness, self-isolation or because some
foreign workers have returned to their Pulp With our glass half full, however:
home country). Meanwhile the housing Although we may not see that antici-
pated recovery in pulp prices, recent in- – Some specialty DWP producers
market is effectively suspended in many
dustry consolidation should underpin the with a high-value and less cyclical
countries and disposable income is
market provided pulp producers are dis- niche may prosper even in this
uncertain if not falling. In anticipation
ciplined. As we will note below, demand challenging market – rayon for tyre
of this slowdown, some panel mills
for tissue and hygiene/sanitary products reinforcement being one example.
across continental Europe are being
temporarily shut. is strong, providing further support. – With India and Pakistan in lockdown
we may see a dislocation in the
Attempting to find something positive, Meanwhile it will be interesting to see
global cotton market. The last time
it has been suggested that home DIY how China reacts to the COVID-19 expe-
this happened in 2010 cotton and
activity may pick up, but the impact of rience. We are already seeing a return to
DWP prices shot up. However, this
this will depend on DIY products being pre-crisis production at many sites. Will
depends on textile demand and as
available online or shops being open. we see any more policy action? For ex-
noted above this may not happen for
ample, further restrictions on the import
some time.
Summary: Until social distancing meas- of “dirty” recycled fibres may encourage
ures are lifted such that construction manufacturers to import more virgin – The Chinese government has reduced
projects can kick off, DIY stores reopen pulp while improving recycling within the tariff for the import of DWP
and economic activity increases, this the country. China is now a much larger into China and the Americans have
industry segment looks to be challenged consumer of virgin pulp when compared recently eliminated tariffs in the
for some time. to the last recession in 2009 / 2010. imports of textile products from China.
Dissolving Wood Pulp Summary: Conventional pulp prices
Here, the picture is mixed. First, the bad news: should remain stable (driven by tissue
and hygiene product and Chinese
– Mitigated partly by online sales, demand), but there is downside risk for
clothing demand has fallen – do commodity DWP prices. However, the
we need new clothes while we are lockdown in India and Pakistan might
cooped up at home? Textile demand change things in the DWP world.
Making Future Visit afry.com Source: Mergermarket, Capital IQ, Company Information, Pöyry Capital 2
Tissue logistics costs. We have started already This crisis has created many challenges
The panic-buying of any form to see disruption in the logistics chain of for the containerboard industry, notably:
of tissue paper (toilet, kitchen recycling companies.
rolls, handkerchiefs) has aroused much Disruption in inbound (as noted above,
comment. We have received many Summary: What looked like a great 2020 for recycled material) and outbound
memes on the toilet paper side, but in the publication paper industry now looks logistics could create additional costs,
due to copyright issues we cannot use like a thing of the past. We now expect a with a potential lack of raw material and
them, although we are happy to send decline in demand and some closures of a potential spike in raw material prices.
them via email. the least cost competitive mills.
Containerboard and corrugated
Many earnest psychology experts have Office papers packaging companies that are highly
put forward all sorts of reasons for this In recent years this segment has seen exposed to industrial demand (consumer
behaviour. We would make the following market declines of 2 to 4% per annum durables, cars, etc) are seeing a strong
observations: and the trend appears likely to continue. fall in demand. Some of the outstanding
While office paper demand will clearly debt of regional players in Germany and
– During this crisis, many customers be impacted by the Work-From-Home Italy are now trading at deep discounts.
have had to try, or settle for, private phenomenon, there are reports of
label tissue products. When the substantial increases in demand for One positive note is that some of the
supermarkets are full again will their paper for those home schooling and conversions from other paper grades
behaviour change? If these private working at home. It’s early days, but that were anticipated to start later this
label products worked well, will they we will be watching this space closely. year in 2021 might now be delayed or
again pay a premium for a particular What we can say is that those who even cancelled.
brand? The same thought might have focused their service offering on
For Solid board packaging and graphic
apply to kitchen roll paper. supplying offices and professions will be
board, we see luxury packaging board
looking for new customers.
– Despite the COVID-19 spike in suffering and stationery market demand
demand, we do not expect much new Summary: Companies that are not also falling (with the caveat noted above
capacity to be added in Europe. More vertically integrated and supply regarding the impact of home schooling
likely, a few opportunistic converters commodity papers to the office market and working from home). Meanwhile
will be established and start to and distributors will suffer a period of the Solid board packaging companies
import and convert jumbo tissue rolls material weakness. focused on food packaging should be
from overseas. doing well.
Specialty paper products
– Meanwhile those manufacturers Summary: As industrial production
Again, the picture is mixed. Specialty
supplying the away from home segment contracts in Q2 2020, we will see slowing
paper manufacturers focused on the
will be suffering for some time. demand for containerboard manufacturers.
manufacturing of food-on-the-go
Summary: Everyone is a winner now papers or papers for consumer durables Recent attempts to increase
(except away from home focused tissue and those operating in cyclical markets containerboard prices in Europe might
manufacturers), but we may see an (such as construction, furniture, cars) are prove quite a challenge during this crisis.
acceleration of private label adoption clearly vulnerable today while demand
for other specialty papers may be more
Cartonboard and Cartonboard
once the crisis is over.
robust, notably medical crepe paper and
Packaging
Publication papers Again, a mixed picture with many of
air filtration products.
This segment is highly geared to the trends already noted apparent here
economic activity and so will be one Summary: It depends on the specialty such as logistics issues (especially for
of the most impacted sectors in the paper type manufactured. recycled material).
short and medium term. During the
Many food-on-the-go carton
Global Financial Crisis publication
PACKAGING manufacturers (burger boxes, french fries
paper manufacturers were hit hard. This
Containerboard, containers, sandwich boxes, etc) may see
crisis may see further weeding out of
Corrugated Packaging and a material drop in demand - some of the
those manufacturers that are not cost
Solid board largest manufacturers in this particular
competitive.
As we all wait at home for next sub-segment have already announced
For some publication paper waste delivery, we may speculate that a change in their 2020 earnings outlook
paper is the principal raw material. the containerboard and corrugated and we should expect this trend to
Here we are seeing some restrictions packaging industry will come out well continue until economies begin to
in the collection and transportation of from this crisis. But like most things in recover.
waste paper creating delays and extra life, things are more complex.
One mitigation has been an increase
in the demand to eat at home as well
as for products that appear on our
supermarket shelves such as cereals,
while new hygiene measures (re-usable
cups not being especially hygienic)
may create additional requirements for
sustainable carton cups.
Summary: Food on the shelf carton board
packaging to benefit temporarily from
the disruption while food-on-the go will
be severely impacted for a few quarters.
Making Future Visit afry.com Source: Mergermarket, Capital IQ, 3
Company Information, Pöyry Capital
Rigid Plastics Summary: Companies exposed to the
Winners and losers, here too. food, beverage and household markets
will be experiencing strong demand;
Those who service low growth, low a diversified end market exposure is
differentiated markets of food, beverage helpful. Food to Go trays will be slightly
and household products (previously soft, food trays for home cooking
perceived as rather dull) are the winners will benefit. Strong growth expected
while the previously glamorous segments in pharma and dispensing whilst
such as cosmetics and premium personal discretionary personal care and beauty
care are struggling. will be challenging for some time.
These days containers which prolong
shelf–life and enable distribution GLASS
through supermarkets to consumers Glass Packaging – North America
and which serve food, beverage and Glass packaging for the food and
household needs are critical and in beverage markets has seen substantial
strong demand. Commodity, low-growth, consolidation over the last decade.
uninteresting packaging products, which However, this consolidation, together
have been at best “resilient” in the good with improved market discipline and
times, are now flying off supermarket few capacity additions and even some
shelves as consumers resort to panic furnace closures, has not been enough
And as with cosmetics above, a large
buying and stockpiling. to compensate for the continued decline
proportion of sales of premium spirits
in US consumption of “mega” beer
PET and HDPE containers for food and (and therefore bottles) depends on duty
and substitution into beverage cans.
beverage and household products have free channels in airports.
Meanwhile import tariffs that were
been in exceptionally high demand. From expected to curb the flow of cheaper The lockdown in China and the fall in air
speaking to one private label manufacturer, imports of bottles appear to have made traffic will therefore have had a material
we understand that the empty shelves in little impact. impact on sales. It will be interesting to see
supermarkets and chemists for anti-bac
how quickly Chinese demand picks up.
soap and hand gel are not due to a scarcity There is quite a bit of good news,
of packaging or indeed manufacturing however. Low gas prices are making a big One manufacturer of niche glass has
capacity in Europe. The problem is more difference, especially now for those glass recently reported that production has
often related to the disruption in supply manufacturers that have not hedged been suspended at two of its plants for
chains of essential chemicals from China gas prices. And while “on trade” beer two weeks. While Asia may see a small
and Asia. Thankfully these are now coming (some 35% of total beer sales in the US rise in demand as the economies recover,
back on line. – mostly sold in kegs or barrels) declines those supplying this specialist segment
sharply due to the closure of restaurants, may have to wait much longer before
After one of the strongest years of bars and hotels, this beer is now being this market recovers.
growth in 2019 in cosmetics and premium packed in retail formats such as cans -
personal care, 2020 will be a stark and and glass. Summary: Glass packaging which serves
depressing contrast. Cosmetics companies the food, wine and beer markets should
traditionally have relied heavily on travel Glass Packaging - Europe be relatively stable – it will be very
retail channels in airports and large Here we have a more fragmented tough for those supplying premium or
department stores. These are now almost and balanced market than in North discretionary products (such as spirits or
completely out of bounds. America. Recently there has been a luxury cosmetics).
slight growth in consumption of glass
By contrast, companies exposed to bottles. Southern European producers
pharma end markets, devices and have benefitted from a client base which
dispensing will of course be supported by is more regional (and less powerful), but METALS
increased demand for their products. We recent capacity additions in Spain and Beverage Cans
have witnessed stockpiling of inhalers France may threaten this balance. Following extensive consolidation in
while those making dispensing pumps this industry, which few imagined could
and closures for liquid soap and hand The impact of COVID-19 on European ever have been permitted, and with
sanitisers are adding capacity to meet glass manufacturers is currently unclear. greater market discipline, beverage can
the surge in demand. Wine and beer remain freely available manufacturers have had a good run, with
and the shops are open. While on trade demand picking up due to environmental
Looking further ahead, rigid plastic sales will naturally collapse, this may concerns around the world over plastic
packaging producers are developing be offset by increased consumption at and switching from PET to beverage
technologies that allow the packaging home. cans. Manufacturers have been adapting
of products to be stored at room to this demand with innovations in can
temperatures for a long period. With the Niche Glass (Spirits) design – we now have “specialty cans”
decline in the oil price, most important Manufacturers of short run bespoke as we have Specialty everything else.
resins for the manufacturing of plastic bottles for the premium spirits market
packaging are also falling – they had (mostly Scotch whisky, gin and cognac) However, while we may see some
already declined by 15 to 25% in the last tend to be located close to the European mitigation from at home consumption
twelve months. Meanwhile producers are distillers and bottles are filled in Europe (see Glass above) it looks like being a
also working to meet the need to use prior to export. During the clamp down very gloomy summer for breweries and
recycled resins. on corruption in China four years ago, we soft drinks manufacturers in the Northern
could see that sales of super–premium Hemisphere with all outdoor events and
spirits are highly exposed to demand in mass gatherings and parties cancelled.
China and elsewhere in Asia.
Making Future Visit afry.com Source: Mergermarket, Capital IQ, Company Information, Pöyry Capital 4Food Cans Valuation Sources of financing
If you have not been able to get your This is the obviously tricky one. How Who will lend today on new deals? With
hands on a tin of tomatoes or beans, you can buyer and seller agree on a price at banks under pressure in Europe to support
might think that the food can industry is these times? Sellers may find it hard to companies and the general public, there
going to have blockbuster year. However, shake off the expectation of multiples might be not much willingness to finance
the beauty of the tin is the longevity that that have been paid in recent years new transactions. We may therefore see
it gives you on the shelf. Although food while buyers may not only query these growth in non-bank lending, albeit at a
can manufacturers might be enjoying multiples, they may also query the higher price and with stricter covenants
a short-term surge in demand, their underlying sustainability of the earnings. than we are used to.
product remains fundamentally “unsexy”.
As much as they try to tell you that Buyers in private transactions may be In North America the non-bank lending
plastic is dead and long live the food can, able to point to signals coming from market has played a major role in PE-
the fact is that brand owners prefer the public markets where in many cases funded transactions. It will be interesting
look, feel and malleability of plastic. we have seen a substantial rebasing to see how these institutions deal with the
of company values. However, with first big crisis they have faced.
Cans will continue to be used for low- the markets so volatile some sellers
value, undifferentiated products (pulses, (especially in previously well-rated
tomatoes, pet food) but recent strategic or “sexy” sector segments) may be
disposals in this space provide evidence reluctant to accept these valuations. For
CONCLUSION
After a relatively quiet Q1, we will
that this market lacks long term growth. the sector segments which have been in
probably see a at least as quiet Q2.
When the crisis is over, let’s look out for negative growth for some time, perhaps
However, this dislocation will pass and
further disposals (or perhaps JVs) in this there will be less to disagree about.
risk appetite will return. Exactly when
market.
This all suggests that we may see a we cannot know but we see enough
So while can manufacturers may have period of reflection with buyers and indications – from the pick-up in China
a strong first half year, the picture for sellers agreeing to disagree for a while, to the determination of governments and
the full year may not be so glorious. but in some sector segments we may central banks to protect the economy –
How many of the tins we have bought see continuing activity. As noted above, to be hopeful that the bounce will come
recently will still be in our cupboard in a many of the industries that we cover soon.
year’s time? have been classified as of “national
What we have learned from past
interest” or “essential” – in these
Summary: Strong first quarter and experience (notably in many transactions
businesses we are seeing much less
generally stable thereafter although done in 2011 - 12) is that companies and
disruption and we should not experience
with a softer seasonal summer uptick sponsors with ample liquidity and the
a complete disappearance of cash flows
than is usually the case. Medium term, right level of preparedness can be in a
in Q2. Here it may be possible to agree
the challenges in this market will position to buy high quality companies
that the current dislocation is a minor
remain the same. that might have seemed too expensive or
blip that can be “normalised”.
unreachable a few months ago.
Timing and Timetables
So – let’s be prepared and act decisively
Most sale processes that had already
M&A OUTLOOK launched are likely to continue, albeit
when the market turns. We at Pöyry
A market dislocation like the Capital - along with our colleagues in AFRY
with some delays depending on the
one that we are currently - are here to work with you on this analysis
sector segment (for example because
experiencing creates different challenges and help at every step of the way.
company approvals take longer, physical
for buyers and sellers. How manage this
due diligence is impossible, lenders are
will depend on how quickly things can
sitting on their hands – see below –
return to anything like normal - will this
and so on). Many deals that are ready
downturn have a “V” shape recovery or
to launch now are being paused for a
will it be more like a “U” or “L” recovery?
month or two “until the dust settles”. So
Early indications from China suggest while we may not see many new deals
that there has been a significant upturn launched in Q2 2020, if things do look
in March following the strong shock to more benign in June be ready for a flood
the economy in January and February. of opportunities in early Q3 and forget
However, the Chinese government has about the conventional summer break
utilised tools in its arsenal that we this year in Europe – we expect a strong
push to work through the summer to get Cele Moncayo
might not be willing to accept in the
Western world. So maybe we will be things done.
Managing Director
more U than V. If that is the case, the + 44 7946 521880
Debt distress
feedback loop mechanism would imply celedonio.moncayo@afry.com
In most of our sector segments this is not
that the recovery in China would not be
a good time to have too much leverage on
as strong because of the big demand
the balance sheet. There will be difficult
drop in the Western World for 2020 and
conversations being had with lenders
so we may see a longer period of the
and out of these discussions we may see
global economy not operating to its full
transactions soon – either outright sales
potential.
or recapitalisations through convertibles
So how might M&A be affected in our or equity like instruments. There are Sandra Bowhay
sectors? opportunists around, corporate and
Managing Director
private equity, keen to take advantage.
+ 44 7920 254258
sandra.bowhay@afry.com
Making Future Visit afry.com Source: Mergermarket, Capital IQ, Company Information, Pöyry Capital 5Sandra Bowhay has joined Pöyry
Capital as Managing Director and
Co-Head of Forest Industry &
Packaging. She joins from HSBC
where she was responsible for the
bank’s paper and packaging sector
coverage worldwide. Sandra is
working alongside Cele Moncayo,
Head of Forest Industry & Packaging
at Pöyry Capital.
Sandra writes:
The last time I changed employer was almost 13 years ago. That was back in
Sandra Bowhay August 2007 and it was the same week as BNP announced that they had been
Managing Director forced to freeze $2.2bn in three investment funds due to liquidity issues relating
to their sub-prime exposure.
I joined Poyry Capital on the 20th January; the same week that the China State
Council announced that the Lunar New Year holidays would be extended in an
effort to contain the Coronavirus.
I clearly have a very bad sense of timing
Despite this, I am thrilled to have joined Pöyry Capital. I have on occasions sat
on the opposite side of the negotiating table to Cele and his colleagues. This
was always an unnerving experience, as the team here has a reputation for
knowing the Paper and Packaging Sector inside and out. It was this deep sector
knowledge that attracted me to the firm.
Now that I am on the same side of the negotiating table, I can confirm first hand
that my previous impressions of the firm were based on reality. I have found the
breadth and depth of knowledge here to be extensive. I have also been delighted
to discover that in addition to the impressive knowledge base of our 19 sector-
focused investment bankers, we can also draw on the seemingly limitless energy
and knowledge of our consulting, engineering and forestry colleagues in AFRY.
More personally it has been a revelation to witness team spirit and collaboration
within the firm – and within AFRY as a whole. Knowledge and expertise are
openly and proactively shared every day.
During these challenging times, where we are working in enforced isolation,
we continue to apply the same team ethic. Our daily call and our regular
interactions with clients seem to be keeping us all sane. We are managing
to maintain the momentum on existing projects while creating a significant
pipeline of new opportunities.
Making Future Visit afry.com 64x 4x
0x 0x
FY15 FY16 FY17 FY18 FY19 FY20E FY15
EV/ LTM EBITDA Average EV
16x Glass P
TRANSACTION UPDATE –1Q 2020 16x Containerboard and Solid board
There has been a rerating for the 12x 12x
sector and most of the sectors
8x 8x
Specialty Paper covered are trading at a material
– Not available discount to the average valuation of 4x 4x
the last 7 years 0x 0x
FY15 FY16 FY17 FY18 FY19 FY20E FY15
Tissue EV/ LTM EBITDA Average E
– Not available Printing and writing paper valuations Cartonboard Distribu
16x 16x
have reached almost an all time low
(driven by a strongly decelerating 12x 12x
Printing and Writing Paper
– Not available economy) to some extend exhibiting 8x 8x
a similar trend for valuations for rigid 4x 4x
plastic packaging companies (driven
Containerboard / Solid board / by environmental concerns)
0x
FY15 FY16 FY17 FY18 FY19 FY20E
0x
FY15
Corrugated board EV/ LTM EBITDA Average EV
– Not available 16x Rigid Plastics 16x Paper a
12x 12x
Carton Board Pulp 8x 8x
– 04 February 2020: a group of private – Not available
4x 4x
investors announced the acquisition
of Akomex 0x 0x
Metal Packaging FY15 FY16 FY17 FY18 FY19 FY20E FY15
– 05 February 2020: CDL announced – 06 February 2020: Management and EV/ LTM EBITDA Average EV
the acquisition of Moulded Fibre Connection Capital announced the 16x Tissue 16x Metal P
Products acquisition of Cargostore Worldwide 12x
12x
– 23 January 2020: A&R Carton Trading
8x 8x
announced the acquisition of BSC – 31 January 2020: Enodev announced
4x 4x
Drukarnia Opakowan (39.18%) the acquisition of Sparflex France
0x 0x
– 03 January 2020: Guala Closures FY15 FY16 FY17 FY18 FY19 FY20E FY15
Rigid Plastics announced the acquisition of EV/ LTM EBITDA Average EV
– 25 March 2020: Nefab Packaging Closurelogic
16x Specialty Paper 16x Flexible Plastics and Labels
announced the acquisition of 12x 12x
Szkaliczki & Partners Plastic
Processing
Glass8xPackaging 8x
– Not4xavailable
4x
– 18 March 2020: Bormioli Pharma
announced the acquisition of GCL 0x 0x
Pharma Distributors
FY15 FY16 FY17 FY18 FY19 FY20E FY15 FY16 FY17 FY18 FY19 FY20E
– 13 JanuaryEV/2020: Freytag & Petersen
LTM EBITDA Average EV/ LTM EBITDA Average
– 17 March 2020: Groupe Guillin
announced
16x the
Printing andacquisition
Writing Paper of 16x Pulp
announced the acquisition of
Wagener
12x Verpackung 12x
Thermoflex
– 09 8x
January 2020: Macfarlane 8x
– 05 March 2020: Envases Soplados
Group announced the acquisition of
announced the acquisition 4x 4x
Armagrip
of Espacoplas - Industria e 0x 0x
Comercializacao de Plasti – 06 January
FY15 2020:
FY16 IGEPA
FY17 announced
FY18 FY19 FY20E FY15 FY16 FY17 FY18 FY19 FY20E
the acquisition
EV/ LTMof ZING
EBITDA Average EV/ LTM EBITDA Average
– 05 February 2020: PSB Industries 16x
16x Containerboard and Solid board Glass Packaging
announced the acquisition of
Qualipac Paper
12xand Packaging Machine 12x
– 27 January 2020: Silgan Holdings Manufacturers
8x 8x
announced the acquisition of Albea – No 4xselected transactions in the 4x
Dispensing Systems analysed quarter
0x 0x
FY15 FY16 FY17 FY18 FY19 FY20E FY15 FY16 FY17 FY18 FY19 FY20E
EV/ LTM EBITDA Average EV/ LTM EBITDA Average
Flexibles and Labels 16x Cartonboard Distributors
16x
– 19 March 2020: Cheyne Capital
Management (UK) announced the 12x 12x
acquisition of Irplast 8x 8x
– 16 March 2020: It was announced that 4x 4x
an undisclosed bidder will acquire
0x 0x
Schades (50% Stake); R+S Group FY15 FY16 FY17 FY18 FY19 FY20E FY15 FY16 FY17 FY18 FY19 FY20E
(83.33% Stake) EV/ LTM EBITDA Average EV/ LTM EBITDA Average
16x 16x RigidPaper
Specialty Plastics 16x 16x Paper
Flexible and Packaging
Plastics Machine Manufacturers
and Labels
– 05 March 2020: Pregis announced the
acquisition of SO.Pr.Ad 12x 12x 12x 12x
– 03 March 2020: Coveris Holdings 8x 8x 8x 8x
announced the acquisition of Plasztik- 4x
4x 4x 4x
Tranzit Csomagoloanyag-Gyarto 0x 0x
0x 0x
FY15 FY16 FY17 FY18 FY19 FY20E FY15 FY16 FY17 FY18 FY19 FY20E
– 31 January 2020: CCL Industries FY15 FY16 FY17 FY18 FY19 FY20E FY15 FY16 FY17 FY18 FY19 FY20E
EV/ LTM EBITDA Average EV/ LTM
EV/ EBITDA Average
announced the acquisition of Ibertex EV/ LTM EBITDA Average LTM EBITDA Average
Etiquetaje Industrial 16x 16x
Printing and Writing Paper Pulp Metal
16x 16x Packaging
Tissue
– 17 January 2020: CCL Industries 12x 12x 12x 12x
announced the acquisition of I.D.&C. 8x 8x 8x 8x
World Holdco and Identilam 4x 4x
4x 4x
– 03 January 2020: CCL Industries 0x 0x
0x 0x
announced the acquisition of Flexpol FY15 FY15
FY16 FY16FY17 FY17
FY18 FY18
FY19 FY19
FY20EFY20E FY15 FY15
FY16 FY16FY17 FY17
FY18 FY18
FY19 FY19
FY20EFY20E
EV/ LTM EBITDA Average EV/ LTM
EV/ LTM EBITDA Average EV/ EBITDA
LTM EBITDA Average
Average
16x Containerboard and Solid board 16x
Glass Packaging
Making Future Visit afry.com Source: Mergermarket, Capital IQ, Company Information, Pöyry Capital | Source: Capital IQ, Company Information 7
12x 12x
8x 8xPöyry Capital’s Quarterly European Paper and Packaging Update
Pöyry Capital’s Quarterly European Paper and
Packaging Update
Selected transactions
SELECTED TRANSACTIONS
Global paper and
has agreed to acquire the European and
packaging company Chinese businesses of
Has sold its JV equity stake in a Asian has sold 100% of
has agreed to acquire paper mill to its joint venture partner
from
to
Financial advisor to Global paper
Exclusive Financial Adviser to Exclusive Financial Advisor to
and packaging company Exclusive Financial Advisor to VPK
Papierfabrik Adolf Jass PEMCO AS
December, 2019 September, 2019 May 2019 January 2019
Sale of forestland assets in
New Zealand, Brazil & has agreed to divest has divested
Uruguay
has agreed to acquire
to
Gemayel Freres & Chaoui
to Group
Industriel
From the Lwart Group
Joint Financial Advisors to Exclusive Financial Adviser to
Financial Adviser to Exclusive Financial Adviser to
Phaunos Timber Fund RGE Inc. Quantum Capital Partners OpenGate Capital
November 2018 September 2018 June 2018 June 2018
has agreed to divest
the Spanish and French operations
of
has agreed to carve out has agreed to acquire the
has agreed to acquire speciality paper business of
a majority stake
a majority stake
in its paper business to
in
to
Exclusive Financial Adviser to Exclusive Financial Adviser to
Financial Adviser to Exclusive Financial Adviser to Sappi Limited PHI Industrial Acquisitions
Bain Capital, LP De La Rue, Plc
March 2018 March 2018 February 2018 November 2017
has agreed to acquire has divested
has agreed to acquire Has agreed to buy
100% of the share capital in ES-
Plastic to
(Polish Personal Care Operations)
Exclusive Financial Adviser Exclusive Financial Advisor to Exclusive Financial Adviser to
RiverRock European Opportunities Exclusive Financial Advisor to
to Mayr-Melnhof Graphic Packaging Anhui Shanying Paper
Fund Ltd.
October 2017 October 2017 October 2017 October 2017
Source: Capital IQ, Company Information
Contact
7
Founded 21 years ago, Pöyry Capital is a sector-focused M&A Cele Moncayo Sandra Bowhay
advisory business, the investment banking arm of AFRY (previously Managing Director Managing Director
ÅF Pöyry). Pöyry Capital has the largest dedicated forest products + 44 7946 521880 + 44 7920 254258
investment banking advisory team in London, managing celedonio.moncayo@afry.com sandra.bowhay@afry.com
transactions across the value chain including timberland, wood
products, biomaterials, pulp, paper and packaging. It also offer M&A
advice in energy & infrastructure and in industrials. Over the past
three years the firm has advised on 18 completed transactions in www.poyrycapital.com
five continents for clients from Europe and beyond.
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