Packaging deals have eclipsed transactions in all other segments of the printing industry, and there is no sign of letting up. The attributes of recurring revenue, customer stickiness due to required brand continuity, and cost of labels, all make label printing highly attractive to financial buyers.
Viewed from the perspective of M&A activity in the printing, packaging and related graphic communication industries, we are in a post-pandemic sweet spot, business is going strong, and we are not yet significantly feeling the effect of inflation and rising interest rates. Packaging is still the red-hot segment, fueled by PE-backed roll-ups chasing fewer available top-notch producers. The commercial print, direct mail, and wide format segments are not as active, but desirable candidates attract a lot of attention and deals are getting done; and more…