New Piper Jaffray Report Reviews Merger and Acquisition Activity in Packaging Industry; Provides Outlook for 2004
March 30 2004 - 10:53AM
PR Newswire (US)
New Piper Jaffray Report Reviews Merger and Acquisition Activity in
Packaging Industry; Provides Outlook for 2004 Banker Expects
Substantial Consolidation in Packaging Industry Over Next Several
Years CHICAGO, March 30 /PRNewswire-FirstCall/ -- Piper Jaffray
& Co. today released Mergers and Acquisitions in the Packaging
Industry - 2003 Year in Review and 2004 Outlook, a new report
written by Doug Lawson, vice president and investment banker in the
Piper Jaffray Middle Market Mergers and Acquisitions (M&A)
Group. In the report, Lawson provides an overview of the industry,
valuations of packaging companies, the level of M&A activity,
financial performance metrics, value drivers for target companies
and the outlook for M&A activity in 2004. "We believe M&A
activity in the packaging industry presents significant value
creation opportunities and that there will be substantial
consolidation over the next several years," said Lawson. In
addition to improving economic conditions and more favorable
conditions in the financial markets, Lawson believes the following
factors will drive M&A activity in the industry: -- High
fragmentation within the packaging industry -- Benefits from
economies of scale -- Strong customer leverage -- Customer service
and innovation driving growth and profitability -- Existence of
substantial purchasing synergies -- Access to lower cost capital --
The need for acquirers' to achieve profitable growth. The report
also details the following M&A highlights from the packaging
industry in 2003: -- The number of announced packaging M&A
transactions increased slightly over 2002 to 311. -- The total
value of deals increased slightly from 2002, to $14.3 billion. --
Paper and board and plastic packaging companies accounted for the
majority of announced transactions. -- Strategic acquirers
continued to account for the majority of the M&A activity. --
Valuations for M&A transactions, which typically fall in the
range of 5.0 times to 7.0 times Enterprise Value / earnings before
interest, taxes, depreciation and amortization (EV/EBITDA),
increased slightly in 2003 above 2002 levels. The report is the
latest in a series of reports by the PiperJaffray Middle Market
M&A group that explore M&A in the packaging industry. Other
recent reports published by Doug Lawson include: -- 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). -- Mergers and Acquisitions Activity in the
Packaging Industry - 2002 Year in Review (February, 2003). In
addition, Piper Jaffray publishes a monthly packaging M&A
newsletter. To subscribe to the newsletter or to request a copy of
Mergers and Acquisitions in the Packaging Industry - 2003 Year in
Review and 2004 Outlook, or any of the aforementioned reports,
please contact Doug Lawson at or 312-920-2139. Headquartered in
Minneapolis, Piper Jaffray & Co., a subsidiary of Piper Jaffray
Companies (NYSE:PJC), is 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. Thefirm serves
corporations, government and non-profit entities, and institutional
investors on a national basis and serves the financial advisory
needs of private individuals predominantly across the western half
of the United States. The firm has over 2900 employees in 111
offices in 23 states across the country and in London, England. 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 H. Wade, Public
Affairs and Media Relations of Piper Jaffray & Co.,
+1-415-277-1556 Web site: http://www.piperjaffray.com/
Copyright
Piper Jaffray Companies (NYSE:PJC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Piper Jaffray Companies (NYSE:PJC)
Historical Stock Chart
From Jul 2023 to Jul 2024