Inform Magazine

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emand is growing for acquisitions of UK packaging businesses. We unwrap the reasons why.

STRATEGIC INTEREST FROM PRIVATE EQUITY AND INVESTMENT BUYERS

Strategic buyers are focused on high-growth, niche sub sectors including:

Packaging has never been more important. With few exceptions, everything we buy is packaged, whether that’s in a physical store or, increasingly, online. Hence it’s no surprise that packaging companies are selling like carefully wrapped hot cakes on the M&A market. M&A activity in this industry is experiencing significant growth, driven by sustainability imperatives, technological advancements, private equity interest and a dynamic global marketplace. In the UK, deal activity rose by 25% year-on-year in 2023 alone. Globally, industry consolidation is accelerating, evidenced by landmark transactions such as Smurfit Kappa’s merger with WestRock and Amcor’s $8.4bn acquisition of Berry Global. These mega-deals underscore a strategic shift towards scale, global reach and operational efficiency. A notable trend is the influx of international buyers acquiring within the UK to strengthen their geographic footprint. For example, Dutch private equity group Waterland has been actively acquiring UK packaging companies, allowing them to enhance their European portfolio. • Sustainability: Packaging companies are at the forefront of sustainability, as evidenced by the surge in popularity of biodegradable, recyclable and reusable materials due to changing regulations and ESG goals. • E-commerce: Online shopping, amplified by platforms such as TikTok Shop and Instagram Shop, has revolutionised packaging demand. Brands seek cost-efficient, brand-enhancing solutions that offer a superior ‘unboxing’ experience and minimal waste. • Innovative packaging: Packaging is becoming increasingly intelligent, incorporating RFID, QR codes, NFC and freshness sensors to improve supply chain visibility and customer engagement. In 2025, the UK packaging market is valued at $60.94bn. KEY MARKET TRENDS

• Flexible Packaging: Plastic films, pouches and labels for e-commerce and consumer goods.

• Eco-friendly materials: Compostable, recycling or reusable solutions.

• Smart packaging technologies: QR code-ena bled, RFID-tagged and freshness-monitoring designs.

• Automation-driven solutions: AI-enabled machinery and robotics.

• Plastic segment consolidation: Major deals in rigid and flexible plastic packaging, such as Novolex’s acquisition of Pactiv Evergreen and the sale of Berry to Amcor. WHICH COMPANIES HAVE KBS SOLD IN THIS SECTOR?

Law Print and Pack sold to SCG Packaging

The Stockport-based packaging solutions provider was acquired by a leading South East Asian packaging manufacturer.

The acquisition strengthened SCG Packaging’s position with the UK market whilst expanding geographic reach.

The Packaging Company sold to Antalis

A provider of high-quality and bespoke packaging solutions was sold to Antalis, a global packaging and print distributor. The Packaging Company proved an attractive prospect due to its innovative and customer focused approach.

Harrisons Packaging sold to MacFarlane Group

The Lancashire-based company became a bolt-on acquisition for Scotland-based MacFarlane Group, strengthening its UK presence. Do you have a company in the packaging industry that you think the time may have come to exit? Contact us today to find out how we can help you to achieve your goals.

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