That’s according to Piper Jaffray & Co.’s report, “Mergers and Acquisitions in the Packaging Industry-2004 Year in Review and 2005 Outlook.” Substantial consolidation is likely over the next few years, says author Doug Lawson, because of the following reasons: Packaging remains highly fragmented; packaging benefits from economies of scale; customer leverage is strong; customer service and innovation drive growth and profitability; substantial purchasing synergies exist; larger companies may enjoy access to lower-cost capital; and acquisitions are a means to provide profitable growth. Visit www.piperjaffray.com for more information.
M&A ACTIVITY TO REMAIN STRONG IN PACKAGING
A stable economic environment, favorable lending market conditions, and large amounts of equity capital available are among the factors that will keep merger-and-acquisition activity levels strong in 2005.
Jul 31, 2005
Machinery Basics
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