Sample Deliverable - Plastic Packaging Market Landscape
Transcript of Sample Deliverable - Plastic Packaging Market Landscape
March 2019
05 November 2020
Market Overview, Competition and M&A
Sample Deliverable - Plastic Packaging Market Landscape
© 2020 RocSearch. All Rights Reserved. 2
Contents
I. Market Overview Global Packaging Market Plastic Packaging: Value Chain Rigid Plastic Packaging: Market Size and Outlook Rigid Plastic Packaging: Plastic Buckets Market Rigid Plastic Packaging: Large Sized Packaging
II. Key Market Trends
III. Competition
IV. M&A Landscape
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 3
01 Market Overview | Global Packaging Market (1/2)
The global packaging market will grow at mid-single digits during 2017-22; plastic will account for xx% by volume and xx% by value
Note: Currency conversion at USD 1 = EUR 0.8914Source: Plastics Europe; Global Packaging Market by Technavio; Trends in Packaging by Euromonitor
Historically, in most countries, the packaging industry has grownat a faster rate than its GDP
Structural changes such as a rising middle-income group indeveloping economies, growing number of small householdsand increasing urbanization will drive the market
Global spending on packaged products by the middle-incomegroup will grow from c. € xxtn in 2015 to c. € xxtn by 2020
Majority of the spending will come from Asia, where themiddle-income group population will reach xbn by 2020
Commodity prices are expected to remain low, which will keeprigid plastic packaging prices competitive
xxxx
xx
xx xx
xxxx
xx
xx xx
FlexiblePackaging
GlassPackaging
MetalPackaging
Paper-basedContainers
Rigid PlasticPackaging
2017 2022
2017 2022
xx
xx
x.x
x.x x.x x.x
x.x
x.x
x.x x.x x.x
x.x
FlexiblePackaging
GlassPackaging
MetalPackaging
Paper-basedContainers
Rigid PlasticPackaging
2017 2022
2017 2022
x.x
x.x
BY VALUE (€BN)
BY VOLUME (TRILLION UNITS)
xx%
x%xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%Flexible Packaging
Glass Packaging
Metal Packaging
Paper-based Containers
Rigid Plastic Packaging
Market by 2022 Value: €xxbn
Volume: x.xtn units
VOLUME VS. VALUE SHARE OF THE MARKET
VOLUME
VALUE
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 4
01 Market Overview | Global Packaging Market (2/2)
Asia will continue to account for c. xx% of the global packaging sector and Food packaging will remain the largest end market
Note: Currency conversion at USD 1 = EUR 0.8914Source: Plastics Europe; Global Packaging Market by Technavio; Trends in Packaging by Passport Euromonitor
PACKAGING MARKET BY END-USE APPLICATIONS (€BN) PACKAGING MARKET BY GEOGRAPHY (€BN)
EMEA The market is expected to grow at x%
between 2017-20
Many leading plastic packaging companieshave their production plants in this region.
NORTH AMERICA The market is expected to grow at x.x%
between 2017-20
E-commerce is a key driver. Food, beverageand pharma are the major end markets.
APAC The market is expected to grow at x.x%
between 2017-20
Consolidation and key players shifting theirbase to India and China will drive the market
REST OF THE WORLD The market is expected to grow at x.x%
between 2017-20
Meat, seafood and prepared baby food arethe dominant categories
xx.x%
xx.x%
x.x%
x.x%
xx.x% Food
Beverage
Healthcare
Personal Care
Other Consumer
More than xx% of all Food packages (in terms of value) areflexible packages
With an increase in the number of single-personhouseholds, the market for convenience foods haswitnessed a rise. Vendors are investing in products thatenable reclosability, single-handed use, and portability
The fastest growth in beverage categories is expected tocome from still drinks, sports drinks, and iced teas
The growing market for easy self-medication proceduresand OTC drugs will drive growth in the Healthcarepackaging end-market
xx
xx
xx
xx
2017
2018
2019
2020
xx
xx
xx
xx
2017
2018
2019
2020
xx
xx
xx
xx
2017
2018
2019
2020
xx
xx
xx
xx
2017
2018
2019
2020
Market Size 2017:
€ xxbn
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 5
01 Market Overview | Plastic Packaging Value Chain
In Europe, c. xx% of the plastic produced, across all end-use applications, is consumed for plastic packaging materials
Source: Citi Global Perspectives & Solutions; Plastics Europe
Oil & Gas Companies
Ethylene Cracker Polyethylene Producers Plastic Packaging Manufacturers
Consumer/ Industrial Companies
Player 1 Player 2 Player 3 Player 4 Player 5
Player 1 Player 2 Player 3 Player 4 Player 5
Player 1 Player 2 Player 3 Player 4 Player 5
Player 1 Player 2 Player 3 Player 4 Player 5LE
ADIN
GPL
AYER
S
xx%
x%
x%
xx%
xx%
xx%
xx%
Others
Agriculture
Household & Leisure
Electrical & Electronics
Automotive
Building & Construction
Packagingxx%
xx%
xx%
x%x%
x%
x%
xx%
LDPE
HDPE
PP
PS
PVC
PET
PUR
OTHERS
c. XXmn Tonnes of Plastic Packaging
Low Density Polyethylene Containers, Bags, Tubes
High Density Polyethylene Plastic Bottles, Pipes
Polypropylene Stationery
Polystyrene DVD Cases
Polyvinyl Chloride Blister Packs
Polyethylene Terephthalate Plastic Bottles
Polyurethane Phone Cases
PLASTIC PACKAGING VALUE CHAIN
End Use Applications of Plastic Across Sectors Packaging Application by Plastic Types
Plastic Production Across Europe
UKItaly
Benelux
Germany
Rest xx%
xx%
xx%
x%x%
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 6
01 Market Overview | Rigid Plastic Packaging: Market Size and Outlook (1/2)
The rigid plastic packaging market will be worth c. € xxbn by 2022, driven by its high demand in the food and beverage sector
Note: Currency conversion at USD 1 = EUR 0.8914Source: Global Packaging Market by Technavio; Trends in Packaging by Passport Euromonitor
GLOBAL RIGID PLASTIC PACKAGING MARKET (€BN)
c. € xxbnc. € xxbn
c. xxbnunits
c. xxbn units
2017 2022
2017 2022
By Value
By Volume
Preference for Rigid Plastic
Rigid plastic packaging is gaining preference over glass and metal because ofattributes like:– Low material density– Comparatively lower costs– Availability in various designs
Major End Markets
The food and beverage industry is the largest end market of rigid plasticpackaging, accounting for c. xx% of the packaging demand
Increasing consumption of packaged water and carbonated soft drinks,predominantly in PET bottles is major driver for rigid plastic packages
However, this end-market has reached maturity in most developedeconomies
Price Competitiveness
Reduced oil price, from more than €xx per barrel in January 2014 to below€xx per barrel in March 2019, has supported the market
Crude oil price is expected to remain below €xx per barrel during 2019-20,which will keep the raw material price lower
Sustainability Challenge Demand for sustainable packaging is driving some manufacturers towards
bioplastics (derived from plant sources)
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 7
01 Market Overview | Rigid Plastic Packaging: Market Size and Outlook (2/2)
In terms of volume, APAC is the largest market and PET Bottles and Thin Wall Containers are the dominant packaging types
Note: Currency conversion at USD 1 = EUR 0.8914; (1) Packaging for food, beverages and beauty and personal care end marketsSource: Global Packaging Market by Technavio; Trends in Packaging by Passport Euromonitor; Packaging World Report on Berry Global
SHARE OF RIGID PLASTIC PACKAGING IN OVERALL PACKAGING MARKET (IN TERMS OF VOLUME)
Western Europe Eastern Europe North America
Latin America Asia Pacific Middle East Africa
xx% xx% xx%
xx% xx% xx%
c. xxbnunits
GROWTH BY RIGID PLASTIC PACKAGING(1) TYPES 2016-21 (IN TERMS OF VOLUME)
x.x%
x.x%x.x%
x.x% x.x% x.x%x.x% x.x% x.x%
HDPE Bottles PET Bottles Plastic Bottles(excl. PET &
HDPE)
PET Jars Plastic Jars(excl. PET)
Thin WallPlastic
Containers
Other RigidContainers
Other PlasticTrays
SqueezablePlastic Tubes
c. xxbnunits
c. xxbnunits
c. xxbnunits
c. xxbnunits
c. xxbnunits
Rigid Packaging: Regional Markets Asia Pacific – Largest market for
rigid plastic, benefiting from its highgrowth economies
Middle East and Africa – Althoughsmall, expected to be the fastestgrowing region due to its beveragepackaging industry, which is forecastto grow by x% CAGR over 2016-21
Western Europe and North America– Slower growth in mature markets,however, their large size will offerpotential in unit volume increases
Rigid Packaging: Types PET Bottles – Extensively used in the
beverage industry
Thin Wall Plastic Containers – Mainlyused for dairy products like yoghurtand sour milk
Predominant Packaging Types – PETBottles and Thin Wall PlasticContainers account for xx% of totalvolumes for rigid plastic packaging infood, beverages, beauty andpersonal care industries
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 8
01 Market Overview | Rigid Plastic Packaging: Plastic Buckets Market
The global market for plastic buckets is estimated to be worth c. €xbn and is forecasted to grow at x% CAGR
Note: Currency conversion at USD 1 = EUR 0.8914Source: Plastic Pails Market by Transparency Research; APAC Driving Plastic Pails Market by Technavio
RIGID PLASTIC BUCKETS MARKET OVERVIEW
Definition
Plastic buckets are cylinder-shaped containers, usually with a capacity of about x liters to xx liters, primarily used for the storage of liquid/powder products
HDPE is the primary raw material used in the production of plastic buckets
There has been substantial improvement in the physical attributes of buckets and production capabilities of manufacturers
Market Size & Outlook
In 2018, the global plastic buckets market was valued at more than €xbn
The market is forecasted to grow at a CAGR of x% till 2020
End Markets
The APAC region has the largest share of the market, followed by Europe, North America and Latin America, respectively
Plastic buckets are used across a number of sectors including Paints & Coatings, Industrial Chemicals, Petroleum & Lubricants, Cleaning Solvents, Food &Beverage Ingredients, Agriculture (fertilizers / pesticides)
Key Trends
Key Sectors: Demand from food & beverage ingredients, oil lubricants and chemical sectors is expected to be the key driving factor for plastic buckets
Key Sectors: Industrial chemical manufacturers prefer cost-effective, lightweight and durable packaging solutions for bulk liquid packaging requirements.Plastic buckets meet these requirements and thus, several industries are switching to plastic buckets for product sales
Product Innovation: There have been a number of innovations in the shape and size of plastic buckets. Rectangular buckets are becoming popular as theyoffer excellent stacking capabilities and help optimize space during transit
Drivers for APAC: The APAC region is witnessing large construction and infrastructure activity which is driving demand for paints and construction chemicals.This, combined with a growing population, higher disposable income and increased urbanization, will make APAC the dominant global market for plasticbuckets
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 9
01 Market Overview | Rigid Plastic Packaging: Large Sized Packaging
xx% of all industrial packaging is Plastic Drums and Intermediate Bulk Containers, the market for which is estimated at € x.xbn
Note: Currency conversion at USD 1 = EUR 0.8914 and INR 1 = EUR 0.0127Source: Indsec Research; Plastic Drums Market by Transparency Research; UBS Equities Silgan Holdings; Prescient Strategic Intelligence
RIGID PLASTIC INDUSTRIAL PACKAGING MARKET
xx%
xx%
xx%
xx%
xx%
Global Industrial Packaging Market By
Package Type
Crates
Buckets
Sacks
Intermediate Bulk
Containers
Plastic Drums
Major End Market The specialty chemical industry (projected to grow at c.
x% during 2018-23) is a key growth driver for industrialpackaging products
Strategic Shift Over the years, major chemical manufacturers have
shifted from China to SE Asian countries due to risinglabour, transport & production costs
Countries like India, Indonesia, Vietnam, Malaysia andThailand are emerging as strategic manufacturingcentres and could soon assume an important role in theglobal chemical industry and consequently theindustrial packaging industry
Intermediate Bulk Containers Plastic Drums
Definition & Application
Large plastic vessels used to store/transport liquid and othermaterials in bulk
x-times in size compared tonormal polymer drums
Mostly made of Polyethylene. Canalso be made of HDPE orPolypropylene
Food grade and UN-certifiedplastic drums are used for F&B andhazardous chemicals industries.
Can be re-used c. xx times withreconditioning
Current Market Size
Value: c. € x.xbn
Volume: xxmn units
Value: c. € xbn
Volume: xxmn units
End Market/ Demand Driver
Over xx% of rigid intermediatebulk containers (IBC) are used bythe chemicals sector
Over xx% of all rigid plastic drumsare used in the chemicals sector
Demand for petrochemicals in thedeveloping regions such as theAsia Pacific and Latin America isboosting the plastic drums market
Top Players & Ranking
Rank 1 - Schütz (Germany)
Rank 2 - Mauser (Germany)
Rank 3 - TTL (India)
Rank 4 - Greif (US)
Rank 1 - TTL (India)
Rank 2 - Mauser (Germany)
Rank 3 -Schütz (Germany)
Rank 4 - Greif (US)
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 10
Contents
I. Market Overview
II. Key Market Trends
III. Competition
IV. M&A Landscape
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 11
02 Key Market Trends (1/3)
Plastic packaging will be driven by its superior material properties; industrial packaging will be driven by product enhancements
Source: RPC Group Analyst Report by Panmure Gordon & Co.; Plastic Drums Market by Transparency Research
Plastic packaging is growing, notjust in terms of its absolute size(volume and value), but also interms of its share in the overallpackaging market
The substitution of glass/metal for plasticsreflects advances in plastics technology anddesign capability
Features such as barrier technology areenabling extended shelf life of ambient food
Plastic packaging is also lighter and soreduces the carbon footprint, therebyyielding financial and CSR benefits for largeconsumer and industrial corporations
The global rigid plastic packaging market isforecasted to grow at c. x.x% between2017-22
This is higher than the c. x.x% growth rateforecasted for the overall packagingmarket
Share of rigid plastic in the overallpackaging market is also expected toincrease from c. xx% in 2017 to c. xx% in2022
DRIVER IMPACT
01
For efficient transportation, filling, handlingand emptying of plastic drums,manufacturers have to adhere to certainspecifications
Plastic drum manufacturers are looking forcertifications (e.g. FSSC 22000,Comprehensive Preventive MeasuresAccording to HACCP) to ensure the highestlevel of food safety
To enhance their products, plastic drummanufacturers are providing:
– Automatic seal cap and load securitysystem for preventing contamination
– Using fluorination processes to providean anti-permeation layer for sensitive/highly-permeable filling products
– Providing an inner layer of polyethylenefor resistance to surface-activechemicals (e.g. detergent and soda)
TREND
Plastic drum manufacturers areintroducing new product rangesand security systems to enhancethe performance of theirproducts
02
DRIVER IMPACTTREND
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 12
02 Key Market Trends (2/3)
China’s ban on waste plastic import and ban on single-use plastic in many countries will have strong impact on the packaging sector
Source: Citi Global Perspectives & Solutions; RPC Group Analyst Report by Panmure Gordon & Co.; Plastic Drums Market by Transparency Research
China, the importer c. xx% of theworld’s paper and plastic waste,has decided to no longer importplastic waste
China accounted for xx% of the world’s CO2emissions. Air quality in many of China’scities fails to meet international standardsfor health and safety
Water pollution is also a major concern asChina accounts for c. xx% of the globalpopulation but only c. x% of freshwater
China has estimated that pollutionnegatively impacts its economy by over $xxbn annually
As a result of the import ban, Westernports have seen plastic waste pile up atstorage sites. There is a collapse in theprice of various recovered plasticsmaterials
Exporting countries will likely be forced toexpand domestic recycling and/or cut backon the level of waste being produced
Import replacement could also boostdomestic virgin resins demand significantly
DRIVER IMPACT
03
TREND
Plastic bags and bottles take anywhere fromxx to x,xxx years to degrade and only ~xx% ofplastic packaging is recycled, while the restends up in landfills
Most common waste-generating polymersinclude LDPE and HDPE, PP and PET, whichare commonly used in bottles and bags
Environmental actions taken by China haverapidly accelerated the banning of single-useplastics
Chemical producers and plastic packagersare responding to pressures on single-useplastic by:
– Light-weighting their products– Investing in plastic recycling companies– Improving recycling systems– Creating bio-based polymers
Metal, glass, and paper may potentially bepositioned to gain back some market
Ban on single use plastics acrossEurope and Emerging Economies
04
DRIVER IMPACTTREND
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 13
Contents
I. Market Overview
II. Key Market Trends
III. Competition Plastic Packaging Competitive Landscape Profiles of Select Players
IV. M&A Landscape
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 14
03 Competition | Plastic Packaging Competitive Landscape
While the market is a highly fragmented (top 10 players have less than xx% market share), it is moving towards consolidation
Source: Citi Global Perspectives & Solutions; RPC Group Analyst Report by Panmure Gordon & Co.
MARKET SHARE OF LEADING PLAYERS
xx%
xx%
Global Plastic Packaging
Market
Globally, the Top 10 plastic packaging manufacturers have less than xx% share of the market
x.x%
x.x%
x.x%x.x%
x.x%
x.x%
x.x%
x.x%x.x%
x.x% Player 1Player 2Player 3Player 4Player 5Player 6Player 7Player 8Player 9Player 10
Fragmented Market Plastic packaging companies typically focus on specific end-
markets (geographic/ sectoral)
While the industry is moving towards consolidation, the top10 players still account for less than xx% of the market
Moving Towards Consolidation
Larger firms are able to invest in the R&D required to developrecyclable packaging and manufacture them at scale,therefore, largescale consolidation among plastic packagershas picked up in recent years
Top 10 Players Market ShareGlobal Plastic Packaging Market
CHALLENGES FACED BY BUSINESS OWNERS
Globally, plastic packaging industry developed during the 1960s and 70s. As foundersseek to pass their business to the next generation, the new owners must decide whetherto divest or invest in the business to cope with issues like:
Identifying demand for packaging that is consistent across multiple markets
Cost of investment in R&D
Material cost volatility that favors large players
Lower demand from developed markets
Sophisticated packaging solutions requiring multiple manufacturing processes
Rigid Plastics 1980 2017
# of Key Players Numerous xx
Market Share c. xx% c. xx%
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 15
03 Competition | Plastic Packaging Competitive Landscape
A scattered customer base, low entry barriers and raw material volatility, fosters high competitive rivalry in this sector
Source: Citi Global Perspectives & Solutions; RPC Group Analyst Report by Panmure Gordon & Co.; Global Packaging Market by Technavio
FIVE FORCE’S ANALYSIS
SUPPLIERS The price of resins is usually volatile
The impact of this volatility is feltmore by small and mid sized playersas large suppliers are able tosuccessfully hedge through long-term contracts
The bargaining power of resinmanufacturers is MODERATE
BUYERS The end-market of packaging
companies is spread across anumber of sectors (e.g. food,beverages, chemicals)
Buyers have the option to choosefrom a large number of vendors
A scattered customer base in afragmented market makes for aMODERATE bargaining power
NEW ENTRANTS There are few barriers to entry
Players who can launch innovative,environment friendly and scalablerigid packaging solutions will be ableto capture the market
The threat from new entrants istherefore HIGH
SUBSTITUTES While alternative options do exist in
the market (i.e. metal, glass, woodand paper), analysts believe theshare of plastic in the overallpackaging market will grow till 2022
The threat of substitutes to plasticpackaging is relatively LOW
COMPETITION The market is highly fragmented
with the top players having arelatively small share of the market
The incumbents are also pursuinginorganic growth options
The competitive rivalry is relativelyHIGH in this sector
Impact of Consolidation on Bargaining Power of Packaging Companies Resin can account for more than half of
the cost of goods sold for plasticpackagers
While the top 10 plastic packagingproducers globally hold less than xx%market, the top 10 producers ofpolyethylene hold c. xx% of the globalmarket
Consolidation in this sector willgenerate meaningful cost synergiesespecially in the area of resinprocurement
BENEFITS OF LARGE SCALE RESIN PROCUREMENT: RPC CASE EXAMPLE
Scale is the key to participating in theglobal polymer market and scale requiresinvestment in infrastructure (processingnetwork and storage capacity)
RPC has arrangements with its customersto pass-on price changes to managevolatility
It designs products that can be made frommore than one grade of a certain polymer,allowing for security of supply
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 16
Contents
I. Market Overview
II. Key Market Trends
III. Competition Plastic Packaging Competitive Landscape Select Player Profiles
IV. M&A Landscape
i. Player 1
ii. Player 2
iii. Jokey Group
iv. Player 3
v. Player 4
vi. Player 5
vii. Player 6
viii. Player 7
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 17
03 COMPETITION | Leading Players: Jokey Group (1/2)
Company: Jokey Plastik Wipperfürth GmbH
Entity Type: Private
HQ: Germany
DoI: 1968
Revenue: € 93 mn
Employees: 2,000
Address: August-Mittelsten-Scheid-Strasse 23, D-51688 Wipperfuerth
URL: www.jokey.com
PRODUCTS & SERVICES
Develops plastic packaging solutions, primarily rigid plastics with lids
Provides plastic buckets, plastic boxes and plastic trays using a plasticinjection molding process. It also offers caps and closures for bottles, tubes aswell as flexible packaging products
Additionally, offers bathroom products such as mirrored cabinets and mirrors
ENDMARKETS
Offers industry-specific solutions for packers of food and non-food goods
Also offers products for paints and construction chemicals, chemicalproducts, food for livestock and pets, toys, tools, household goods andmedical disposal containers
Within the food sector, the company provides packaging solutions for icecream, dairy products, cereals, dietary supplements, processed food, ready-to-use mixtures, confectionary, meat and vegetables
For the chemicals sector, the company provides packaging solutions forhomecare, cosmetics, car care, greases, oils, wet wipes, fertilizers, etc.
GEOGRAPHICPRESENCE
The company has 15 production plants in 12 countries and caters tocustomers in over 80 countries
BUSINESSSTRATEGY
Jokey focusses on industry specific solutions and custom made packagingsolutions through custom mould packaging, high-resolution, photorealisticimages produced in the In-mould labelling process (IML) and precisepreproduction of brand colors
OWNERSHIP
Family Owned
Owned and operated by the second and third generation of the Kemmerichfamily. Herbert Kemmerich and Ralf Kemmerich are the Managing Partners
KEY OBSERVATIONS
Jokey’s revenue has grown significantly since2014, however, margins have sharply declined
The company reinvests c. 10% of its turnoverinto R&D, distribution solutions and employeedevelopment
Jokey is pursuing organic growth in terms ofincreasing its distribution channels andmanufacturing sites. Jokey is also pursuingcross-border acquisitions opportunities forinorganic growth
Note: Currency conversion at USD 1 = EUR 0.8914Source: Company Website; Bundesanzeiger; S&P Capital IQ; LinkedIn
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 18
03 COMPETITION | Leading Players: Jokey Group (2/2)
93
87
9091
93
12.1%11.0%
24.1%
7.9%
3.6%
2013 2014 2015 2016 2017
REVENUE & EBITDA MARGIN (€MN, %)
MANAGEMENT TEAM
NAME DESIGNATION DoJ EMAIL
Herbert Kemmerich CEO & Managing Partner 2018 [email protected]
Peter Dörmbach CFO 2010 n/a
Jens Stadter Managing Director 1971 [email protected]
Ralf Kemmerich COO & Managing Partner 1971 [email protected]
RECENT DEVELOPMENTS
Mergers & Acquisitions
May 2017: Acquired Spanish packaging producer TreplasS.L., hence broadening their operations and customerreach
Expansion
June 2017: Opened their online distribution channel atwww.jokey-shop.com, for direct ordering by customers
January 2017: Opened new UK storage and distributionfacility in Ferrybridge, in response to Brexit
March 2016: Opened their first packaging plant in Russiaby setting up a plant worth €11mn in Ulyanovsk
Appointments
January 2019: Jens Stadter will take over the chairmanshipfrom Herbert Kemmerich, following the conversion of theWipperfürth and Gummersbach parent plants into aEuropean stock corporation, Jokey SE
Awards
November 2018: Awarded the Pack The Future Award inthe Eco Design category at the ALL4PACK packaging tradefair in Paris, France
November 2017: Awarded the 2017 BME Innovation Priceby the Bundesverband Materialwirtschaft, Einkauf undLogistik e.V, for successful repositioning of group-wideprocurement operations
Note: Currency conversion at USD 1 = EUR 0.8914Source: Company Website; Bundesanzeiger; S&P Capital IQ; LinkedIn
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 19
Contents
I. Market Overview
II. Key Market Trends
III. Competition
IV. M&A Landscape
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 20
04 M&A Landscape
The global packaging market is moving towards consolidation; emerging market M&A activity in 2018 was higher than 2016-17
Note: Currency conversion at USD 1 = EUR 0.8914Source: Packaging M&A Activity - William Blair; Bloomberg; Mergermarket; S&P CapitalIQ; Thomson Reuters EIKON
xx xx
xx
xx
xx
xx xx xxxx
xxxx xx
xx
x.x
x.x
x.xx.x
x.x x.xx.x x.x
x.xx.x x.x
x.x
x.x
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Number of Deals Value of Deals (€bn)
GLOBAL PACKAGING MARKET M&A TRENDS
xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx%
xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx% xx%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Emerging Markets Developed Markets
Transaction Volume Vs. Value
Developed Vs. Emerging Markets
M&A Activity Continues to Accelerate in2018 Both strategic buyers and financial
sponsors aggressively pursuedopportunities
In H1 2018, the total deal volume andvalue witnessed a sharp increase
M&A deals are being driven by:– Ongoing consolidation of an industry
that remains largely fragmented– Growth tailwinds provided by
eCommerce, on-the-go food andbeverage and healthcare markets
– Growing interest from financialsponsors drawn to the industry’sdefensive characteristics
Emerging Markets Picking Up
In 2018, emerging market M&A activityincreased from its 2016-17 levels,accounting for c. xx% of all deals, up fromxx% in 2017
This increased activity in emergingmarkets is being driven by strategicacquirors turning to global markets toexpand their addressable market andparticipate in higher growth regions
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 21
04 M&A Landscape
Demand for packaging assets is reflected in their valuations; financial sponsors are paying a premium for these assets
Note: Currency conversion at USD 1 = EUR 0.8914Source: Packaging M&A Activity - William Blair; Bloomberg; Mergermarket; S&P CapitalIQ; Thomson Reuters EIKON
VALUATION TRENDS (EV/ EBITDA)
x.x
x.xx.x
x.x
x.x
x.x
x.xx.x
x.x x.x x.x
x.xx.x
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Median: x.x
STRATEGIC BUYERS VS. FINANCIAL SPONSORS
Valuations in 2018 are Well Above the 10-year Median There is robust demand for packaging
assets, which is reflected in the valuationsof these companies
In H1 2018, the median EV/EBITDAmultiple for packaging acquisitions wasx.x, well above the longer-term median ofx.x
Healthy valuations achieved by sellershave been supported by lenderswillingness to finance packagingacquisitions
Financial Sponsors Outbidding StrategicBuyers Financial sponsors are increasingly
outbidding strategic buyers for packagingcompanies that are large enough to serveas platform assets (c. €xxmn+ in EBITDA)
Strong cash flow, relatively low capex anddefensive nature of many end markets,make these companies attractive assetsfor PE firms
Financial sponsors continue to look forpotential platform assets with strongmanagement teams, proven ability toexecute on an acquisition strategy and afocus on less cyclical end markets
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
2010
2011
2012
2013
2014
2015
2016
2017
2018
x.x x.x
x.xx.x
x.x
x.x
2015 2016 2017
Strategic Buyers Financial Sponsors
Number of Deals EV/ EBITDA
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 22
Glossary: Rigid Plastic Packaging Types
HDPE Bottles
PET Bottles
Plastic Bottles
(excl. PET & HDPE)
PET Jars
Rigid Containers
Plastic Trays
Plastic Jars (excl. PET)
Thin Wall Plastic
Containers
Squeezable Plastic Tubes
Intermediate Bulk
Containers
Plastic Drums
Plastic Buckets
Sample Only- Disguised and Abridged
© 2020 RocSearch. All Rights Reserved. 23
Our Offices
Business Enquiries – [email protected] | General Enquiries – [email protected] | Webpage – www.rocsearch.com
United Kingdom99 Kenton Road, Harrow,Middlesex, HA3 0ANUnited KingdomT: +44 203 051 8569
India A-16, Sector 16, NoidaU. P. - 201301IndiaT: +91 120 4017100
Hong Kong28th Floor, Fortis Tower77-79 Gloucester RoadWan chai, Hong KongT: +852 5801 4643
United States77 Park Avenue #1515Hoboken, NJ 07030USAT: +1 30 3502 5409
South America Pedro Agrelo 865. Rosario, Santa Fe. ArgentinaS2005OPCT: + 54 341 453 1088
PolandUI. Rzeznicza 2A/1, Krakow, 31-540,PolandT: +48 667 925 670
Disclaimer
This document is proprietary to RocSearch and the information contained herein is confidential. Not without prior
written permission from RocSearch, may this document be reproduced, either in whole or in part, or disclosed to others
outside your firm.
Whilst care and attention has been exercised in the preparation of this document, RocSearch does not accept
responsibility for any inaccuracy or error or any action taken in reliance on the information contained within. All
warranties whether expressed or implied by statute, law or otherwise are hereby disclaimed and excluded to the extent
permitted by law.
In case of any questions on this document, please reply to the sender.