It is clearly a
seller’s market
for plastics processors in North America. Most processors have enjoyed numerous consecutive years of solid economic conditions and many are now looking to expand via acquisition to augment their organic growth initiatives. Financial investors continue to look for sound, strategic companies to acquire and build. Although the industry remains relatively fragmented (with thousands of small and mid-size companies), there are more buyers than sellers and demand for good companies far exceeds supply. For privately held companies with under $100 million in annual revenue, MBS is seeing transaction multiples range from 6.0 to 10.0+ times trailing-twelve-month EBITDA.
