A decade ago, private equity couldn’t get enough of plastic packaging. They snapped up companies making bags, films, and trays to contain everything from food and fashion to drink to drugs, drawn by reliable cash flows and consolidation prospects.
But now the sector is not quite so in vogue. Many buyout firms are steering clear, and some of those holding assets are struggling to offload them at what they consider attractive prices, according to people involved in such deals.
Private equity investment in the global plastic packaging sector has already slowed in recent years, with the combined deal values in 2016–2020, of $1.3 billion, being a third lower than in the five prior years, according to Refinitiv data.
By Arno Schuetze
