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Does big always equal effective? In the world of sustainability, there are small firms making big splashes — and huge companies that deliver little. In this case, the newly formed (and uniquely large in the realm of sustainable packaging) Smurfit Westrock will hope its emergence from the component parts of Smurfit Kappa and WestRock Company will mean giant leaps forward on the path to net zero. There is a strong legacy of green delivery from the merged firms. There is also unmistakable intent in the words of Tony Smurfit and Ken Bowles. Here’s hoping the words become an endless procession of deeds that transform the packaging industry into a sustainable force. #smurfitwestrock #sustainablepackaging #merger

From FMCG; There has been a number of big impact issues across FMCG this week, specifically in retail. While the dust settles, there's an increasing amount of conversation of spin offs and acquisitions from PE. The FMCG landscape is shifting in AUS, which is great to see. There will be plenty of new opportunities on the horizon! #fmcgsales #fmcgindustry #privateequity

The UK-listed packaging firm DS Smith has just announced a “highly preliminary” approach from its rival Mondi Group, without giving a price. The companies are comparable in size; DS Smith’s market cap is £4.3 billion, while Mondi’s is £6.1 billion, so it’s possible this will be a share for share offer. It’s worthy of note that currently their rivals Smurfit Kappa and WestRock Company are in the middle of a share exchange offer, which will see WestRock shareholders receiving 49.6% of the combined group and also a 36.5% premium on WestRock’s undisturbed share price. Applying such a premium to Mondi/DS Smith would see an offer price for DS Smith of around 383p. That would translate to an Enterprise Value of £7.3 billion and an EV/EBITDA (last twelve months) ratio of 6.5X, comparable to the 6.7X EV/EBITDA on offer for WestRock. However it’s also possible that Mondi, should it make an offer, might go lower and try and sell DS Smith shareholders on the future value that could be created through synergies between the two groups. In the absence, of further information from the parties, we can only speculate at this stage. #manda #mergersandacquisitions #londonstockexchange

Shares in FTSE 100-listed DS Smith PLC (LSE:SMDS) surged 7% higher to 384.8p after the packaging group confirmed yesterday evening that it is in talks about being bought by rival International Paper Co (NYSE:IP).  Earlier this month it agreed to a £10 billion merger with Mondi PLC (LSE:MNDI). The new proposal is that DS Smith shareholders would get 0.1285 International Paper shares for each of theirs, with the latest IP share price of $40.85 valuing DS Smith at 415p apiece, a 48% premium to where its shares traded before its 8 March Mondi statement. DS Smith said it is also continuing discussions with Mondi regarding the all-share offer from the South Africa-based rival, which valued its shares at 373p for a £5.14 billion valuation. On the IP deal, it said: "The board acknowledges the strategic merits and potential for value creation through a combination with International Paper. Accordingly, the board... More at #Proactive #ProactiveInvestors http://ow.ly/oyyl105ntYO

Yesterday afternoon, just 7 minutes before the Takeover Panel’s deadline, the packaging companies Mondi Group and DS Smith announced a possible share-for-share combination. This looks like a good deal for both companies. DS Smith shareholders would get a very decent 33% premium to the undisturbed share price on top of potential benefits from the large cost-saving opportunities from the combination. Mondi shareholders would maintain control, with 54% of the enlarged group, whilst taking over a company with larger revenues and EBITDA (see below) – DS Smith has generally traded at a discount to other companies in the sector. #manda #mergersandacquisitions #londonstockexchange

We are thrilled to announce another successful transaction for a CPG Company client.  We’d like to express our gratitude to everyone who helped make this a success and are excited for the future of the organization. If you're interested in learning more or about the potential options for your company, reach out to info@westlakesecurities.com  👉 https://lnkd.in/dWFhB4Px #FinancialAdvisory #CapitalRaising #MergersAndAcquisitions #Growth #InvestmentBanking 

Don't judge a book by its cover, a person by his/her appearance and an M&A deal by its immediate post-deal EPS. (Backdrop for non-finance audience - The sentiment is to see an increase in shareholder returns of the Buyer company post an M&A deal and a dilutive deal means that the returns reduced instead.) Came across this interesting article on a Sunday morning from HBR - "Discipline and the Dilutive Deal". It highlights the fact that when it comes to Shareholder returns (Earnings Per Share/EPS), companies making dilutive mergers or acquisitions are more likely to outperform industry averages than companies making accretive one's. What could account for this? In one word: Discipline. The market’s suspicion of DILUTIVE deals places enormous pressure on executives to be rigorous in both analyzing and executing mergers. Meanwhile, the market’s embrace of ACCRETIVE acquisitions eases the pressure on executives, raising the likelihood of sloppiness in analysis and tardiness in execution. There could be various reasons why the EPS of the Buyer company reduces post the deal and one of the examples highlighted in the article is about Kellogg's acquisition of Keebler Foods. Check it out if curious. https://lnkd.in/d3M9XFa6

Our Q2 2024 Packaging Industry M&A Recap is now available. The M&A landscape is gradually recovering as we move through 2024. Although the full recovery is taking longer than expected, there are encouraging signs ahead pointing to growing optimism and the potential for increased market activity in the latter half of the year. In the packaging sector specifically, industry leaders continue to seize excellent growth opportunities despite challenging market conditions. For more insights, feel free to contact any of our EY team members. Ken Brooks Felix Cote, Yanis Lakhdari, Michael Di Giorgio #EY #Packaging #mergersandacuisitions #corporatefinance

Global Packaging M&A activity slowed after a strong second quarter and beginning of the third quarter, with 23 deals recorded in August—eight fewer than in July and the lowest since April. Despite the slowdown in August, year-to-date deal volume remains strong compared to 2023, with 206 deals so far, up 26 from the same period last year. Read more in PMCF Investment Banking's August 2024 Packaging Update: https://lnkd.in/eCnQu-6t #Packaging #InvestmentBanking #MergersAndAcquisitions

DS Smith PLC (LSE:SMDS) said it is continuing talks about being taken over by fellow paper and packaging group Mondi PLC (LSE:MNDI), after receiving a higher bid last week from US rival International Paper Co (NYSE:IP, ETR:INP). Earlier last month, Smith and Mondi agreed to a £10 billion merger before the US group, which is slightly larger than the two FTSE 100-listed companies put together, came in with a cash and shares bid valuing Smith at 415p a share or £5.14 billion in total. Today, Smith said it has reached a new agreement in principle about a possible all-share offer by Mondi, where the South African group would acquire the entire share capital of DS Smith. Accordingly, the put-up-or-shut-up (PUSU) deadline for Mondi has been extended to 5pm on 23 April to iron out more details (or wait for a bigger offer from the Americans). "DS Smith is continuing discussions with Mondi regarding the... More at #Proactive #ProactiveInvestors http://ow.ly/zCus105oq90