TKO Miller Market Analysis 

• The Flexible Packaging Industry continued its strong growth trajectory in 2018 with an overall 4-5% increase. [ResearchAndMarkets]
• The price of plastic materials and resin has remained low since falling 11.3% in 2015 due to the collapse in world oil prices. [IBISWorld]
• The consolidation of the industry continued in 2018 as strategic buyers continued to seek new markets, capabilities, and synergies. Among industry leaders, Amcor announced the acquisition of Bemis, Transcontinental acquired Mutifilm Packaging and Covaris America, ProAmpac acquired Gateway Packaging Company, PacTech Packaging, and Bonita Packaging Products, Inc., and Berry Global conducted a sharerepurchase and acquired Laddawn, Inc. [CapIQ]
• The profile of these transactions suggests that the larger industry players are willing to pay premiums for smaller niche companies in an effort to expand their business models and service offerings. 

TKO Miller  Flexible Packaging Transaction 

February 2019 – TKO Miller Advises HFM Packaging, Ltd. on its Sale to PPC Flexible Packaging, LLC 

HFM Packaging, located in Pewaukee, Wisconsin, is a leading flexible packaging company specializing in manufacturing peel and re-seal products, lidstock, and stand-up pouches. For over 40 years, HFM has supported some of North America’s largest flexible packaging companies and consumer brands in the design, material selection, and manufacturing of specialty flexible packaging solutions. PPC Flexible Packaging, a portfolio company of Morgan Stanley Capital Partners, converts flexible films, pouches, and bags sold to customers worldwide and is a trusted leader within the consumer and cleanroom markets.

“This was an ideal result for both HFM and PPC,” said Joe Froehlich, Managing Director, TKO Miller. “Paul Martinez, HFM’s President and Jon Riggs, HFM’s Executive Vice President, have built a highly successful specialty packaging business, and PPC’s team will provide a smooth transition and greater resources to continue its growth.”

“This is PPC’s second acquisition in the last six months,” said Kevin Keneally, CEO of PPC. “HFM’s market-leading position in peel and re-seal applications, stand-up pouches, and packaging for hard-to-hold liquids lines up perfectly with our existing customer base and markets, allowing us to advance our growth strategy.” 

“Selling your Company is emotional and finding the right buyer for your company is important. We are proud of the culture of excellence that we created at HFM and believe that PPC will continue that legacy and continue to serve our customers with high quality products and service and be a great place to work,” said Paul Martinez, President, and son of Harvey Martinez who founded HFM in 1976.

Recent Flexible Packaging Transactions

November 2018 – PPC Flexible Packaging Announces Acquisition of Temkin International

PPC Flexible Packaging, LLC, a leading provider of custom flexible packaging for specialty food and healthcare markets, announced the acquisition of Temkin International.

Temkin International, headquartered in Payton, Utah, is a provider of roll stock, stand-up pouches, and floral sleeves. The Company is known for its speed to market in key target segments including food, fresh produce, floral, and stationary and craft.

November 2018 – Resource Label Group Acquires Best Label 

Resource Label Group, a full-service provider of pressure sensitive label, shrink sleeve and RFID/NFC technology for the packaging industry, has acquired Best Label Company, broadening its presence on the West Coast.

Located in Cerritos, California and Union City, California, Best Label is one of the largest label manufacturers on the West Coast and provides solutions across the food, beverage, health and beauty, pharmaceutical, automotive, agricultural, and chemical industries.

January 2019 – TricoBraun Acquires Pacific Bag

TricorBraun has acquired Pacific Bag, LLC, one of the largest independent U.S. distributors of flexible packaging.

TricorBraun will combine Pacific Bag with its existing flexibles business, Taipak, to create TricorBraun Flex, a new business unit focused on flexible packaging.

The new unit, TricorBraun Flex, will continue to operate out of existing locations in Vancouver, Seattle, Calgary, Toronto, and Philadelphia.

Flexible Packaging Valuation Index

Middle Market Valuation Multiples

Flexible Packaging News 

A Study Commissioned by Crown Holdings Resulted in Several Key Learnings in Food Packaging Trends

For older consumers, food cans with easy-open ends have high value. In addition, this demographic as a whole displays fierce brand loyalty. Younger consumers placed high priority on sustainability, recycling, and minimizing waste. They demonstrated an openness towards new, modern, dynamic packaging and graphics. Pet owners showed great familiarity and experience with a variety of package formats due to the high level of innovation in the sector. https://www.packagingnews.co.uk/news/environment/recycling/crown-commissions-research-food-packaging-trends-26-10-2018

One on One with Dow Chemical 

PlasticsToday recently sat across the table from Nathan Wiker of Dow Chemical Co., the Company’s Global Market Leader and North America Group Marketing Director, for a discussion around emerging developments in plastics and packaging centered on the Company’s increased activity in sustainability aligned with a circular economy.

Some of the emerging developments include: growth and dynamics between rigid plastics and flexible packaging, the RecycleReady program that converts mono material into recyclable pouches that were previously non-recyclable, and new technology leveraged out of Asia Pacific. Part 1; Part 2

About TKO Miller

TKO Miller, LLC is an independent, advisory-focused, middle market investment bank. With over 130 years of collective transaction experience, TKO Miller provides merger and acquisition and financial advisory services for privately-held and private-equity owned businesses, with a special focus on family-and-founder-held businesses.

Flexible Packaging is one of TKO Miller’s core industry focuses, along with Consumer Products, Industrial Services, Manufacturing, Business Services, and Health Care. After advising numerous flexible packaging and printing companies on M&A and financing transactions, TKO Miller’s professionals have developed deep industry knowledge and a broad contact network that accompanies their transaction expertise with privately-held companies.

TKO Miller aims to bring value to clients by combining outstanding people with a results-oriented, flexible approach to transactions. Our services include company sales, recapitalizations, asset divestitures, and management buyouts. TKO Miller has a generalist focus and has served clients in a wide range of industries, including manufacturing, business services, consumer products, and industrial products and services. For more information, visit our website www.tkomiller.com