2018年-普华永道全球_Global_forest_paper_and_packaging_deals_insights_Q1_2018_6页_1mb

PwC Deals Summary: Q1 2018 Global Forest, Paper and Packaging M&A Insights

Core Content

The first quarter of 2018 saw significant M&A activity in the global forest, paper, and packaging (FP&P) sector, driven by strategic consolidation and favorable economic conditions. Despite a slight decrease in deal volume compared to previous quarters, the value of deals surged due to the influence of large-scale transactions.

Main Points and Key Information

M&A Activity Overview

• Total Deal Value: $39.6 billion in Q1 2018, up 7 times compared to Q1 2017 and 4 times compared to Q4 2017.
• Deal Volume: 128 deals in Q1 2018, a 36% decrease from Q4 2017.
• Average Deal Size: Increased sixfold to $733 million, significantly higher than the three-year average of $166 million.

Megadeals

• Three megadeals were announced, accounting for the majority of deal value:
  • Suzano Papel e Celulose SA acquired Fibria Celulose SA for $16.7 billion.
  • International Paper Co. acquired Smurfit Kappa Group PLC for $15.5 billion.
  • WestRock Co. acquired KapStone Paper & Packaging Corp. for $5.1 billion.
• These deals made up 81% of the total deal value in Q1 2018.

Sector Category Analysis

• The Paper and Fiber Based Products category dominated Q1 2018, accounting for 96% of deal value.
• Flexible Packaging and Miscellaneous Products and Forestry also saw activity, though at lower volumes.

Regional Activity

• Asia and Oceania led in deal volume, both by target and acquirer.
• North and South America combined for 97% of acquirer value in Q1 2018.
• Cross-border deal activity decreased due to geopolitical tensions and tightening trade policies.

Financial vs. Strategic Investors

• Strategic investors were the primary drivers of M&A activity in Q1 2018.
• Financial investors accounted for only 1.5% of deal value, likely due to increased market risks and challenges in the FP&P sector.

Outlook for 2018

• Consolidation is expected to continue, especially in developed economies.
• Key drivers include:
  • GDP growth (global at 3.7%, US exceeding 3%).
  • High stock valuations and the potential use of stock as a financing tool.
  • Focus on exiting non-core businesses and aligning with future strategies.
  • Technological advancements and the need for digital strategies.
  • Lower corporate tax rates and repatriation of capital, increasing available capital for acquisitions.
• Commodity prices are at record highs, improving cash flows and balance sheets, which may encourage more M&A activity.

Top 10 FP&P Deals in Q1 2018

Conclusion

The FP&P sector experienced a notable surge in M&A activity in Q1 2018, primarily fueled by strategic consolidation and favorable economic conditions. While deal volume decreased, the value of transactions increased significantly, highlighting the sector's ongoing transformation through major mergers and acquisitions. The focus on sustainable practices, supply chain resilience, and competitive advantage is expected to continue shaping the sector's M&A landscape in 2018.