Second Half M&A Activity Expected Slower But Still Strong

Published: July 12, 2011

CHICAGO, IL |  Mesirow Financial  issues a mid-year review and second half forecast for the packaging industry with regard to merger & acquisition activity.

The first half of 2011 saw a significant pickup in M&A activity across many industry sectors, including packaging. In fact, first-half 2011 M&A overall totals were the strongest since before the economic downturn, according to Mesirow's "Packaging Perspectives" newsletter. What's largely responsible for this activity are corporate acquirers seeking growth and an interest to improve their competitive position.

In addition there have been ample levels of "corporate liquidity, accommodative credit markets, and healthy stock prices, and valutions," the newsletter reports. It's observed that M&A is once again being used as a vehicle to achieve objectives as organic growth and cost reductions are challenging to achieve. Still feeling the impact of the slow economy are large private equity deals and the commerical banking industry.

According to Mesirow, the second half of the year is expected to be strong though "not at the same pace as the first. It is unlikely that strategics can duplicate the activity level seen in the first half. High-yield bond issuance in 2011 will probably reach an alltime high." The financial services firm anticipates the possibility of one or two large private equity-backed packagaing transactons in the second half of 2011.

For a full recap, with a list of Mesirow financial deals, click here.