New Piper Jaffray Report Reviews Merger and Acquisition Activity in the Corrugated Container Sector of the Packaging Industry
17 August 2004 - 2:13AM
PR Newswire (US)
New Piper Jaffray Report Reviews Merger and Acquisition Activity in
the Corrugated Container Sector of the Packaging Industry CHICAGO,
Aug. 16 /PRNewswire-FirstCall/ -- Piper Jaffray today released
Corrugated Containers: A Mergers and Acquisitions Review, written
by Doug Lawson, vice president and investment banker in the Middle
Market Mergers and Acquisitions (M&A) Group at Piper Jaffray.
In the report, Lawson provides an overview of the corrugated
container market, including industry characteristics, end markets
and major participants. In addition, he reviews M&A value
drivers, transaction activity and valuation metrics. The corrugated
container market is one of the largest sectors of the packaging
industry. Corrugated containers are typically used to protect,
ship, store, market and display products. The market has grown at a
compound annual growth rate of 2.7 percent since 1992 (based on the
value of corrugated shipments), although the market has contracted
in each of the past three years. Domestic growth for the corrugated
container market is projected at approximately three percent
annually through 2007. Factors affecting the level of growth
include: (i) the state of the economy, (ii) offshore competition
and (iii) competing products. Historically, corrugated container
demand has moved with changes in gross domestic product (GDP);
however, more recently corrugated container demand has been more
closely associated with non-durable goods production. According to
Lawson, the corrugated container market has experienced significant
consolidation in recent years. He believes the consolidation of the
market will continue, with the large integrated companies remaining
the most active acquirers. "Acquisitions will continue to be driven
by opportunities to expand geographical presence, fill mill
capacity and add capabilities and customers," said Lawson. "We do
not expect to see significant private equity involvement in the
sector. We anticipate that the majority of corrugated container
companies will be sold in the five to seven times EBITDA range;
however, companies with certain characteristics will attract higher
valuations." Corrugated Containers: A Mergers and Acquisitions
Review is the latest in a series of reports by the Piper Jaffray
Middle Market M&A Group that explore M&A in the packaging
industry. Other reports published by Doug Lawson and his team
include: -- Mergers and Acquisition Activity in the Packaging
Industry -- 2003 Year in Review and 2004 Outlook (March 2004) --
Mergers & Acquisitions Value Drivers for Companies in the
Packaging Industry (February 2004) -- Packaging Industry Valuation
Considerations: Capital Expenditures (December, 2003) -- Caps and
Closures: A Mergers and Acquisitions Review (August, 2003) --
Valuations in the Packaging Industry (May, 2003). -- Packaging
Industry Public Acquirers - Earnings per Share Accretion/Dilution
Considerations (March, 2003). In addition, Piper Jaffray publishes
a monthly packaging M&A newsletter. To subscribe to the
newsletter or to request a copy of Corrugated Containers: A Mergers
and Acquisitions Review, or any of the aforementioned reports,
please contact Doug Lawson at or 312-920-2139. Piper Jaffray &
Co. is the chief operating subsidiary of Piper Jaffray Companies
(NYSE:PJC), a focused securities firm dedicated to delivering
superior financial advice, investment products and transaction
execution within selected sectors of the financial services
marketplace. The company operates through two primary
revenue-generating segments: Capital Markets and Private Client
Services. Investment Research, an independent group reporting to
the CEO, supports clients of both segments. Piper Jaffray & Co.
has served corporations, government and non-profit entities,
institutional investors and the financial advisory needs of private
individuals for more than 108 years. Headquartered in Minneapolis,
Piper Jaffray has approximately 3,000 employees in 111 offices in
23 states across the country and in London. For more information
about Piper Jaffray, visit us online at
http://www.piperjaffray.com/ . Since 1895. Member SIPC and NYSE.
DATASOURCE: Piper Jaffray & Co. CONTACT: Dana Wade, Public
Affairs and Media Relations of Piper Jaffray, +1-415-277-1556 Web
site: http://www.piperjaffray.com/
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