• Skip to primary navigation
  • Skip to main content
  • Skip to footer
Rockworth Management Partners Limited

Rockworth Management Partners Limited

  • About Us
    • Rockworth Team
    • Join Us
  • What we do
    • Company Sales
    • Acquisitions
    • Fundraising
    • Building Value
      • Exit Planning
      • Market Mapping
      • Company Valuation
    • Investments – the Partners Fund
  • Sectors
    • Business Services
    • Consumer and Retail
    • Healthcare
    • Training, Recruitment & Consultancy
    • Industrial & Engineering
    • Marketing Services
    • Telecoms, Media and Technology
  • Transactions
  • Value-Vault
  • International
  • News & Events
  • Contact Us
    • Privacy

Packaging & Plastics M&A Spotlight

UK Plastics & Packaging – an industry at inflection point

2 Nov, 2019
With fairly sluggish growth over the last five years that we see continuing in the forecast period, it’s clear the trending ‘zero-waste’ culture has caused the landscape of the packaging market to change.

Growing awareness of environmental hazards and climate change means that consumers are demanding more recyclable materials and less waste, in turn putting pressure on retailers to use less packaging or focus on recycled and reusable materials. In 2017, Iceland announced that it would become the first major retailer to stop using plastic in its own brand products. This followed the announcement of government plans to end the use of non-essential plastic in the UK by 2042.

The migration away from single-use packaging has been hampered, however, by the low price of oil which has resulted in virgin plastics becoming cheaper.

Over the last two years the UK packaging market has accelerated slightly due to the strong export market, attributed to the weak sterling following the Brexit referendum, particularly in the paper and card segment. Online retail orders and parcel deliveries have also kept this side of the market buoyant, where the lack of alternatives limits buyer power.

Investor Sentiments

Ongoing economic uncertainty has led investors to be more cautious when approaching deals.

However, after an disappointing performance in 1H19, Europe has enjoyed a relative recovery over the last few months, with the value of deals in 3Q19 reaching USD 166.5bn.  M&A activity in the UK specifically has continued to experience higher transaction volumes over the last several years since 2016.

The UK & European Markets

In FY2018 the UK packaging market had total revenues of £39,018m, reflecting a compound annual growth rate (CAGR) of 1.3% between FY2014 and FY2018.

The French market declined with a compound annual rate of change (CARC) of -0.6% to £18,450m in 2018, and our German counterparts saw the market increase with a CAGR of 1.8% to £48,697m over the same period. The United Kingdom currently accounts for 13.2% of the European packaging market, while Germany accounts for 16.5%.

Packaging Consumption Volumes

Figure: 2018 Global Packaging Market by Material Type

Market consumption volume increased with a CAGR of 0.9% between 2014 and 2018, to reach a total of 42.7 million metric tonnes in 2018. The market’s volume is expected to rise to 44.2 million metric tonnes by the end of 2023, representing a CAGR of 0.7% for the 2018-2023 period.

Increasing awareness about the impact of excessive waste on the environment has influenced consumer trends towards reusing and recycling. The rigid plastic segment was the market’s most lucrative in 2018, with total revenues of £21,615.8m, equivalent to 42.7% of the market’s overall value. The metal segment contributed revenues of £10,258.1m in 2018, equating to 20.3% of the market’s aggregate value.

Fragmented UK market

The leading incumbents DS Smith, Ball Corporation, Mondi and Crown Holdings are creating fierce price competition, consolidation through M&A and motivation for economies of scale. Additionally, there is a certain degree of backwards integration. The packaging market is often dictated by the demands of the supply chain, meaning price fluctuations can significantly impact profit margins. Scale or differentiation is required to continue operating in the market and both have been drivers for acquisitions in the mid-market players.

Roundup of Manufacturing Groups

Pat Chambliss, the executive vice president for M&A and corporate strategy at Novolex, the Carlyle Group owned manufacturer of packaging products, confirmed recently that they will use acquisitions to grow and broaden their product portfolio, and have not placed an upper or lower limit on deal size. Novolex have been active on both sides of the spectrum acquiring Zenith Specialty Bag, a US-based paper food packaging company at the low end, and purchasing Waddington Group in 2018 – including 16 sites in North America and Europe with 3,000 employees – at the top-end. While the focus remains on North America targets, it will look for European expansion in the coming year and have mentioned 8x EBITDA multiples as being a market average they would expect to pay for deals. 

European Packaging Players

Numerous European packaging companies have also been on the acquisition trail. Notable deals in recent months include:

– THIMM Group, a German company manufacturing corrugated cardboard packaging products, which agreed to acquire ISL Schaumstoff Technik, a supplier of foam solutions, and ISL Verpackungstechnik an industrial packaging solutions provider on 17th October 2019;

– Zeus, a Dublin-based packaging group, which acquired two British packaging businesses, Van Der Windt and Smith Bateson, on October 1st;

– Berlin Packaging, a supplier of rigid packaging products which acquired Netherlands-based Vincap & Adolfse on 3rd September, and;

– AMB S.p.A., the Italian storage and packaging solutions provider, which acquired Thermodynamix Thermoforming Specialist Services Limited, a UK-based
provider of PET, RPET and laminated rigid packaging.

Other European players continue to be vocal about their appetite for M&A, including the Finnish firm Huhtamaki whose CEO Charles Héaulmé conveyed earlier this year that they are on the lookout for “large acquisitions”. He mentioned that the company has a strong balance sheet that it is looking to deploy over the coming months. Similarly, the CFO Ken Bowles of Smurfit Kappa, the Irish-based packaging company, has said it is looking to spend c. €700m on acquisitions over the 2019-2020 period, specifically targeting home territories in Europe, but also in South America. They would prefer small bolt-ons that are easier to integrate, but will not shy away from larger deals having already acquired Reparenco in May 2019 for €460m, and Avala Ada for €133m.

Beyond Europe

There are definitely active buyers beyond the European continent. In Australia Pro-Pac Packaging’s CEO Tim Welsh has said he continues to focus on “[…] opportunities presenting […] acquisition synergies”. In South Africa Transpaco is also on the lookout for acquisitions, and in Canada IPL Plastics will “likely” pursue more deals following its purchase of Belgian firm Loomans Group.

Rockworth recent activity

<strong>Sale of GBCC to Swantex</strong>
Sale of GBCC to Swantex

GBCC is a specialist supplier of card and paper greetings products. They were acquired by Swantex, a UK-based supplier of disposable plastic and paper products primarily to the foodservice and catering sectors, but also through its luxury gift packaging brand Penny Kennedy. The company was established in 1892 and has its head office on a five acre site in Swanley, Kent. It is from here that the majority of its products are manufactured and distributed, both nationally and internationally.

Read more
<strong>Sale of Pritchards Tyrite to Certex UK  </strong>
Sale of Pritchards Tyrite to Certex UK

One of the UK’s leading importers and distributors to the cargo and packaging sectors, Pritchard Tyrite is best known for its wide range of lashings, straps and tarpaulins. Axel Johnson is a Swedish conglomerate of businesses across a range of industries.

Read more
<strong>Sale of Wokingham Plastic to Cox Thermoforming  </strong>
Sale of Wokingham Plastic to Cox Thermoforming


Wokingham is one of the leading plastics thermoforming businesses in the UK supplying a wide range of industries. Cox Thermoforming is a plastics thermoforming company with a strong heritage. The combined entity has renamed as CWPL and is now one of the largest plastic thermoforming specialists in the UK priding itself on being able to produce high quality, complex mouldings with a wide range of plastic materials.

Read more

David Byk, chief executive officer of Swantex, said, “GBCC is a great business. There are so many opportunities and synergies. This acquisition, four years after Swan Mill acquired Ling Design, is a momentous and very exciting step for us. It brings together two great UK companies which will open up huge possibilities for all the UK regional, national and charity customers as well as our strong export channel.”

About Rockworth

Our experience shows us that successful transactions in Plastics & Packaging M&A are the result of exhaustive market research processes, numerous in-depth (but anonymous) conversations with C-suite figures, multiple discreet meetings with potential acquirors and a truly competitive bidding process. 

Find out how we can help your business

Realising growth

We work with private companies providing lead advisory business sale and transaction services and long-term exit-planning and strategic growth.

Uniquely confidential

We combine creativity and hard evidence to create a choice of options for our clients.  We always focus the market down to serious interest before even revealing the existence of a client, let alone a client’s identity.

Maximising value

We offer pre-sale planning advice and how to approach and prepare for a deal, giving insight on maximising the value from a transaction.

Rock Solid Standards

We guide our clients, with rigorous attention to detail, throughout the negotiation and due diligence process until the deal is completed.  Our approach is open and collaborative, keeping clients in full control of the transaction.

hero header placeholder


Discover the potential of your business


Explore our online portal, Value-Vault. It’s a free-to-access, no-obligation questionnaire and is designed to provide either a standalone ‘health check’ for a business, or to form the starting-point for a more comprehensive process in preparing your business for sale.

Visit Value-Vault

What our Clients say

  • Immense thanks to you both, Lawrence and Zuzana,for all of your hard work and trustworthy advice on this deal; your focus and patience have been incredible. I've been hugely impressed at all stages on how you've guided me through this process; and how you've kept cool heads when it must sometimes have been very challenging to do so. I'm really positive about the next stages. Extremely happy to recommend Rockworth.
    Andy Crysell
    Founder & CEO, Crowd DNA
  • Having been involved with the company for several years prior to the transaction, it was a very natural step for Lawrence and his team at Rockworth to lead the transaction with Investindustrial on behalf of the family shareholders. The key factors in the decision were to maintain absolute confidentiality so as to avoid disruption to the company that had been owned by the founding family for 110 years. Rockworth managed the sale process effectively, coordinating at times a very large number of advisors and negotiating all aspects of the deal alongside management and the shareholders. Rockworth also managed to keep to a tight timetable, agreeing the deal at Christmas and signing 2 months later in order to be able to announce the transaction at the Geneva motor show. The resulting transaction was as good as anyone could have hoped for and all involved are excited about Morgan’s prospects going forward.
    Dominic Riley
    Chairman, Morgan Motor Company
  • The Directors of GBCC were advised thoughout by Rockworth Management Partners whose market expertise enabled them to identify a number of potentially interested parties, of which Swan Mill Holdings became the purchaser.
    Chris Davies
    Finance Director, Great British Card Company
  • .. Thank you everyone at Rockworth for their guidance, advice and pragmatism during what has been a very quick turnaround. It has been a pleasure.
    Andy Whittard
    Managing Director, Cherwell Laboratories Limited
  • The Rockworth approach ensured that we were looking at companies we could be confident had a genuine interest in the transaction without revealing exactly who was looking.
    Jim O’Connor
    CEO, i2N
  • Rockworth provided the support, experience and the technical knowledge that we needed to secure a successful sale.  Lawrence and his colleagues are all high calibre individuals, and I would certainly recommend them.
    Alice Watson
    Founder, Porge Research
  • During the whole process the team at Rockworth were always available to answer questions, no matter how banal, and held our hand through the whole procedure... I can honestly say that without the Rockworth calm hand on the tiller I am not sure we would have got through it in such an easy manner.  
    David Bilton
    Director, CadCam Technologies Limited
  • Kittiwake Developments chose to work with Rockworth on the basis of their approach, networks and reputation.  Lawrence and his team provided excellent support throughout the entire sale process and enabled the company to achieve an outstanding result with the sale to Parker Hannifin. Whilst there was a great deal of complexity at times, it was managed with great care and my colleagues and I enjoyed working together with the Rockworth team throughout. I would have no hesitation in using Rockworth for future transactions and would recommend them very highly to others.
    Martin Lucas
    MD, Kittiwake Developments Ltd
  • Rockworth’s advice and guidance played a key role in the acquisition process at every step of the way – from creating the initial datasheet to the conclusion of final negotiations. In particular, the team’s exceptional support during due diligence was fundamental to meeting a very tight timeline that was just six weeks from formal offer to completion.
    Simon Flatt
    Founder, Pinnacle Marketing Ltd
  • I would like to thank you and the team for the major contribution you made in the sale of Cromptons Healthcare. It turned out to be a very complicated deal and I have to say I was staggered by the commitment and effort that was required from us all. I was impressed by both the professionalism and the support that Rockworth provided, which proved to be absolutely essential to me. I had not fully appreciated beforehand just how necessary that support would be.
    Martin Calhoun
    Owner, Cromptons Healthcare Ltd
  • Lawrence, many thanks to you and the members of the Rockworth team for achieving such a great result for us with the sale of Young Black to Indutrade. It is the best possible result we could have achieved, both for ourselves as shareholders, and for our staff, ensuring not just the continuation of the company, but positioning it for further growth through the development of our Max and Montana brands. We were very pleasantly surprised at the range of potential acquirers that William managed to introduce us to, and had no idea initially of the types of acquirer that you would manage to find from outside our direct industry. Yours and Zuzana’s thorough approach to Due Diligence was enormously helpful, and as I said before – a really impressive team effort from all involved.
    David Black
    Managing Director, Young Black IS Ltd
  • Rockworth was the ideal guide and partner in our search for a buyer for our company. Their process, insight and people skills were the perfect antidote for our inexperience and were a major factor in achieving the smooth path to our desired outcome. From the start their approach suited our needs as a privately owned company with limited resources to run the business and undertake a transaction. Particular features of their work included: the confidential, targeted development of contacts to generate a shortlist of worthwhile interested parties; the professional way they managed all phases of the process; their support for the development of presentation materials and answers to due diligence questions; and their communication and negotiation skills. They were invaluable in helping us understand what was needed and what we might reasonably expect. I cannot recommend them highly enough.
    Tim Champion
    Managing Director, H.Squared Electronics Limited
  • Thanks for the efforts of the Rockworth team in concluding what we hope will be a happy outcome and in particular we should thank you for being so persuasive regarding what a great investment KDL would be to external parties! No doubt we’ll continue to remain in touch particularly if we are chasing after local acquisitions.
    Andre Blackburn
    Owner, Kenure Developments Limited
  • I would like to thank Rockworth for their efforts in managing the deal process of our recent transaction: from initial preparatory work and advice through the deal process and to final completion, we found your work to be invaluable. I was particularly impressed with the careful and thorough management of the due-diligence process carried out by yourself and the team: the consistency and detail-oriented manner in which this work was carried out was much appreciated and ensured that the deal completed smoothly, even accounting for the different languages and countries that formed part of this transaction.
    Fabio Antoniazzi
    Founder, La Credenza Ltd
  • As a family owned business it was extremely important to us that we had an advisor who took real care and attention to the detail of our business which is in a niche market. Lawrence Price and his team demonstrated real commitment to the deal, both in researching appropriate potential acquirers and following this through in a diligent and extremely supportive manner. I know that without Lawrence and his team we wouldn’t have achieved the successful outcome that we did.
    Rachel Bush
    Owner, Bush & Company Rehabilitation Ltd

Footer

Company

  • Home
  • About Us
  • The Rockworth Team
  • News & Events
  • Transactions

Address

Magdalen Centre
Robert Robinson Avenue Oxford
OX4 4GA
UK

Contact

+44 (0) 1865 784 896 rockworth@rockworth.co.uk

Copyright © 2021 · Rockworth Management Partners Ltd