Graphic Arts Advisors Issues Report on 2015

MOUNTAIN LAKES, NJ | Graphic Arts Advisors offers the Target Report, which has been chronicling merger, acquisition, and restructuring activity in the (l) printing, packaging and related industries since 2011. Each month the company publishes the results of research and analysis of the macro-trends, often focusing on a particular segment. In January the researchers look back at the entire year and offer general projections about the coming year.

In packaging, the reports says there is significant interest from active strategic and financial buyers to acquire printing companies that specialize in the packaging segment. There is good reason for this as growth and stability in packaging printing is perceived (correctly the company believes) as much more sustainable and less subject to disruption from electronic media. Valuations are significantly higher in the packaging segment. Nonetheless, the data from 2015 suggests that many sellers are waiting, although the tepid pace of packaging-related M&A activity in the winter and spring has recently picked up.

The reports says when the data on packaging transactions is parsed, a clear picture emerges: Flexible packaging companies are in demand, followed by their close cousin in the use of flexo technology, label printers. There were several notable transactions in the corrugated segment, especially in the latter part of the year. No surprise here, says the study, as the growth in online commerce and direct delivery drives demand for corrugated cartons.

In the paper industry, transactional activity was most brisk on the supply side of the paper industry (however, there were several notable deals involving other suppliers to the printing industry, such as ink manufacturers, as well as equipment). Included as well in the report is information on commercial printing and publishing. The company also researches and works with companies that are in some level of distress, reporting on closings or filing for bankruptcy.

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