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In just a few quarters, the world has seen a complete reshuffling of packaging producers. Yesterday, on April 16th, International Paper announced an agreement to acquire DS Smith, a move that mirrors the merger between Smurfit Kappa and WestRock. The integration of approximately 500-600k tons of containerboard from DS Smith into the International Paper mill system will increase the combined integration rate to approximately 90%. With these mergers, Nine Dragons now faces two major competitors in the Americas and Europe. This consolidation process brings 16% of the world’s packaging capacity under the control of three companies. #pulp #pulpandpaper #pulpandpaperindustry #packaging #packagingindustry #merge #mergeandacquisition #strategy

Following discussions last week around a potential merger, Smurfit Kappa and WestRock Company have confirmed an agreement to combine their businesses into a $20 billion company To get access to unmissable exclusive content and enhanced personalisation options, become a Packaging Europe subscriber (for free): https://lnkd.in/e3xexKss   Follow our hashtag to stay up to date with the latest packaging news: #PackagingEurope

At first glance, the merger between Smurfit Kappa and WestRock was surprising. However, understanding the geographical footprint of each company, the move seems quite strategic. The Pulp and Paper Industry is vast, with hundreds of companies operating in various segments. This same strategic logic could indeed be applied to these other segments. For instance, there are several Printing and Writing Companies in Europe that produce over a million tons, yet their presence in other regions is minimal. Conversely, some companies have a strong foothold in the southern hemisphere but lack a significant presence in Europe. The Tissue Business presents an even more diverse landscape. If we consider only those companies producing 500k tons or more, excluding the Asian Pacific players, the potential for synergies is astounding. The industry’s fragmentation suggests numerous opportunities for strategic alliances and mergers. #pulpandpaper #pulpandpaperindustry #tissue #tissuepaper #mergersandacquisitions #mergers

In September, two of the world’s largest #paper #packaging producers—Ireland’s Smurfit Kappa and its U.S. rival WestRock Company—announced an $11 billion deal to create #sustainable packaging powerhouse Smurfit Westrock. The merger, expected to close in the second quarter of 2024, will have a deep impact on the corrugated packaging market, which is coping with weaker demand and lower prices globally. This mega deal gives the combined company a greater presence in Europe and deeper sector experience in North America, which might lead to increased competition and drive more M&A activity in Europe and the Americas. Still, our #RaboResearch packaging and logistics analysts, Xinnan Li and Natasha Valeeva, expect little immediate impact on #containerboard prices. For more in-depth analysis, read their report: https://bit.ly/48buM0a #mergers

More on the Smurfit Kappa WestRock merger. "As of 30th June 2023, the combined adjusted revenue and adjusted EBITDA over the last twelve months are set to reach respective approximates of $34 billion and $5.5 billion. On a pre-synergy basis, it is anticipated that Smurfit WestRock will achieve accretion in the upper single digits when compared to Smurfit Kappa’s earnings per share.  "Including run-rate synergies one full year after completion, accretion is expected to exceed 20%. In the same time frame, the companies are working towards annual pre-tax run-rate synergies of over $400 million. Their deliveries are thought to require around $235 million in one-off cash costs." #pulpandpaper

DS Smith’s stock has surged over 10% as of 8:40 AM on February 8th in New York City. The significant rise is attributed to a potential takeover bid from Mondi. Although no formal proposal has been put forth, DS Smith’s board acknowledges that Mondi is contemplating an offer. Mondi believes that merging with DS Smith could lead to the formation of a leading entity in the European paper-based sustainable packaging industry, well-equipped to capitalize on the growing trends in sustainable packaging. #pulpandpaper #pulpandpaperindustry #mergersandacquisitions #mergers #packagingindustry #packaging

𝐀 𝐧𝐞𝐰 𝐩𝐚𝐜𝐤𝐚𝐠𝐢𝐧𝐠 𝐠𝐢𝐚𝐧𝐭?   I’ve seen the recent news that an agreement in principle has been reached for Mondi Group to acquire DS Smith within the paper and packaging space which will really form a European leader in sustainable packaging solutions.   The merger would create a company boasting a value of over £10 Billion, solidifying its position as a packaging leader.    This comes after the recent mega-merger between paper and packaging giants WestRock Company and Smurfit Kappa. Regulatory approval is still needed, but if the merger goes through, it could be a significant development in the sustainable packaging space.   𝑾𝒉𝒂𝒕 𝒂𝒓𝒆 𝒚𝒐𝒖𝒓 𝒕𝒉𝒐𝒖𝒈𝒉𝒕𝒔 𝒐𝒏 𝒕𝒉𝒊𝒔 𝒑𝒐𝒕𝒆𝒏𝒕𝒊𝒂𝒍 𝒎𝒆𝒓𝒈𝒆𝒓? 𝑰𝒔 𝒕𝒉𝒆𝒓𝒆 𝒂𝒏𝒚 𝒐𝒕𝒉𝒆𝒓 𝑴&𝑨 𝒂𝒄𝒕𝒊𝒗𝒊𝒕𝒚 𝒐𝒏 𝒕𝒉𝒆 𝒉𝒐𝒓𝒊𝒛𝒐𝒏?    #packaging #mondi #dssmith #merger

Integrating Quality Processes And Documentation After A Merger - https://lnkd.in/eqJmTzy5 - By Aaron Chio and Sydney D.aniels, Clarkston Consulting Explore what quality leadership should consider throughout a merger to ensure the right quality processes and documentation are implemented.

The snack industry is experiencing notable growth, driven by the significant role played by health-focused snacks in promoting wellness, in addition to emerging trends such as substitute products. Moreover, companies in this sector are leveraging mergers and acquisitions (M&A) to strengthen their position in the market and capitalize on new consumption trends. Discover the current landscape of mergers and acquisitions (M&A) in the snacks industry in our latest quarterly report. We delve into the valuation multiples of publicly traded companies such as Grupo Bimbo, GRUMA, Nestlé, PepsiCo, among others. Additionally, we highlight the most recent transactions announced during this past quarter. If you're interested in receiving this quarterly report and/or our monthly and sectoral reports, subscribe at https://lnkd.in/gmxEs6E4. #Snacks #SnackIndustry #MergersAndAcquisitions #QuarterlyReport #Mergers #Acquisitions #MergersAndAcquisitions

While researching mergers and acquisitions, I found that Michael Porter uses the term beachhead to describe the strategic benefits of entering a new industry. A notable example is Procter & Gamble's 1957 acquisition of Charmin Paper Company, which acted as a beachhead. This strategy allowed Procter & Gamble to create a closely interrelated group of paper products, including disposable diapers, paper towels, feminine hygiene products, and toilet paper. #MergersAndAcquisitions #BusinessStrategy #MichaelPorter #Beachhead #ProcterAndGamble #StrategicManagement #CorporateFinance #BusinessGrowth