Mazzone advises The Hansen Group on its acquisition of Elevation Foodservice Reps
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to The Hansen Group (“THG” or the “Company”) with respect to the acquisition of Elevation Food Service Reps (“Elevation”).
Elevation will now operate as The Hansen Group Rockies, and will expand THG’s footprint to cover new markets including Colorado, Utah, New Mexico, Arizona, Wyoming and El Paso, Texas.
“Working with Mazzone gave us the clarity and confidence to move forward with this acquisition,” said Wayne Jones, Partner at The Hansen Group. “Their team anticipated challenges before they arose, provided sound strategic advice and guided us on this important step in our company’s growth.”
May 2025 Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to The Hansen Group (“THG” or the “Company”) with respect to the acquisition of Elevation Foodservice Reps (“Elevation”).
Elevation will now operate as The Hansen Group Rockies, and will expand THG’s footprint to cover new markets including Colorado, Utah, New Mexico, Arizona, Wyoming and El Paso, Texas.
“We see tremendous opportunity ahead in the foodservice industry, and our goal is to think big and lead the way,” says Kristin Bishop, partner at The Hansen Group, in a press release. “By bringing Elevation into our family and launching The Hansen Group Rockies, we’re combining their local expertise with our proven systems, streamlined processes and strong company culture to build something even better together.”
The acquisition supports The Hansen Group’s long-term vision to expand into key markets while providing THG Rockies and similar operators with new tools and support to better serve dealers, consultants and operators throughout the region.
“Whether it’s solving challenges, delivering value or supporting culinary innovation, we’re here to help our customers win,” says Dave Schwefler, partner at The Hansen Group. “We can’t wait to meet everyone and get to work.”
“Working with Mazzone gave us the clarity and confidence to move forward with this acquisition,” said Wayne Jones, Partner at The Hansen Group. “Their team anticipated challenges before they arose, provided sound strategic advice and guided us on this important step in our company’s growth.”
About The Hansen Group
Founded in 1957, The Hansen Group is a third-generation foodservice equipment sales representative, distribution and installation service firm serving the customers across the U.S. Headquartered in the Southeast, The Hansen Group operates across the Southeast, Southwest and Mountain West serving restaurants & QSR, education, healthcare, hospitality, retail and other markets. For more information, please visit www.thehansengroup.net.
About Elevation Foodservice Reps
Founded in the Western U.S., Elevation Foodservice Reps is a manufacturers’ representative firm providing best-in-class foodservice equipment and solutions to commercial and healthcare operations. Representing over 50 leading brands, Elevation offers hands-on culinary expertise, demo services, and specialized support for hospitals, clinics, and care centers. In 2025, Elevation was acquired by The Hansen Group and now operates as The Hansen Group Rockies, serving MAFSI Region 20, including Colorado, Utah, New Mexico, Arizona, Wyoming, and El Paso, Texas. For more information, please visit www.elevationfs.com.
Mazzone advises MVP Granite Countertops on its sale to Construction Resources
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to MVP Granite and Flooring, LLC dba MVP Granite Countertops (“MVP” or the “Company”) with respect to the sale of MVP to Construction Resources Company, LLC (“Construction Resources”). The specific terms of the transaction were not disclosed.
MVP provides surface and countertop fabrication and installation services to custom and production builders, interior designers, and remodelers in the South Carolina Lowcountry that enable homeowners and businesses to find the perfect solution for their countertop and design needs.
March 2025 Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to MVP Granite and Flooring, LLC dba MVP Granite Countertops (“MVP” or the “Company”) with respect to the sale of MVP to Construction Resources Company, LLC (“Construction Resources”). The specific terms of the transaction were not disclosed.
MVP provides surface and countertop fabrication and installation services to custom and production builders, interior designers, and remodelers in the South Carolina Lowcountry that enable homeowners and businesses to find the perfect solution for their countertop and design needs.
The acquisition of MVP expands Construction Resources’ presence in the Charleston and surrounding markets and unlocks greater services for shared customers. MVP will be able to leverage CR’s scale and capabilities to strengthen and grow its existing customer relationships as well as develop new relationships.
MVP President Jamey Nelson reflected on the partnership with Construction Resources saying, “I’m proud of what my team has accomplished over the past seven years since joining MVP Granite Countertops, and we couldn’t be more excited to join Construction Resources and help shape their growth in Charleston. We look forward to the opportunities and customer value this partnership will bring.”
Jamey highlighted “The Mazzone team is top-notch, and their industry knowledge and skillset ensured a smooth transaction process and great strategic fit. We are incredibly grateful to partner with the Mazzone team and look forward to the opportunities and customer value this partnership will bring.”
Stuart Sanford, Director at Mazzone, remarked “We are proud to have represented MVP and its ownership on its strategic exit to Construction Resources. Jamey has built a great team and a market leader in the South Carolina market. This transaction enhances the combined company’s ability to access new markets and improve product offerings—unlocking greater value for all stakeholders.”
About MVP Granite
MVP Granite Countertops is a Charleston-based provider of surfaces and countertop fabrication and installation services for professional builders, interior designers, and remodelers. The company offers marble, granite, and quartz products that enable homeowners and businesses to find the perfect material for their countertops, flooring, or other design projects. For more information, please visit http://mvpgf.com.
About Construction Resources
Construction Resources, who was acquired by The Home Depot in December 2023, is a leading distributor of design-oriented surfaces, appliances, and specialty products for professional contractors & designers focused on renovation, remodeling, and residential home building. For more information, please visit https://www.constructionresourcesusa.com.
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Mazzone advises New Era Converting Machinery Inc. on its sale to IPCO AB, wholly owned by FAM AB
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to New Era Converting Machinery Inc. (“New Era” or the “Company”), with respect to the sale of New Era to IPCO AB (“IPCO”).
New Era is a web converting equipment design and manufacturing business, with two facilities located in Paterson, New Jersey. With 100+ employees and historical sales in 20+ countries, the Company is a world leading supplier of purpose-built coating, laminating, embossing, casting, calendering, and specialty systems for the web converting and roll-to-roll industry. The Company provides turnkey services, spares and systems to customers operating in a wide array of end applications including filtration, battery, packaging, adhesive and other market segments.
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to New Era Converting Machinery Inc. (“New Era” or the “Company”), with respect to the sale of New Era to IPCO AB (“IPCO”).
New Era is a web converting equipment design and manufacturing business, with two facilities located in Paterson, New Jersey. With 100+ employees and historical sales in 20+ countries, the Company is a world leading supplier of purpose-built coating, laminating, embossing, casting, calendering, and specialty systems for the web converting and roll-to-roll industry. The Company provides turnkey services, spares and systems to customers operating in a wide array of end applications including filtration, battery, packaging, adhesive and other market segments.
The acquisition of New Era enables IPCO to become a turnkey provider of processing equipment, with a broad portfolio of presses, film casting and web handling solutions in key industries, especially sustainability driven segments. IPCO expects to leverage its strong sales and aftermarket capabilities in 25 countries to accelerate New Era’s growth.
Paul Lembo, New Era EVP said, “Joining IPCO is the natural next step in New Era’s evolution as we secure the long-term future of our solutions, team and customers, and accelerate the growth of our business.”
Robert Hermans, IPCO CEO said, “The acquisition of New Era is a perfect strategic fit with IPCO’s business ambitions. It enhances our core offerings and introduces new dimensions to our double belt press and film casting capabilities, giving us the ability to offer turnkey solutions to our customers. This synergy will allow us to provide comprehensive and efficient web handling and calendering solutions on a global scale.”
Mazzone’s deal team was led by Jonathan White, Stuart Sanford, and Bradley Herring. Bob Pasquale, one of the founders of New Era added that “Mazzone’s guidance was instrumental in realizing a successful outcome for the selling shareholders. Their diligent and professional approach made a great result for everyone possible.”
About New Era Converting Machinery Inc.
Headquartered in Paterson, NJ, New Era is a leading supplier of purpose-built coating, laminating, embossing, casting, calendering, and specialty systems for the web converting and roll-to-roll industry. New Era also provides turnkey engineering service and spares for aftermarket services across a customer base operating in a wide array of end applications including filtration, battery, packaging, adhesive and other market segments. For more information, please visit https://neweraconverting.com/.
About FAM AB
FAM AB is a privately-owned holding company that manages its assets as an active owner with a long-term ownership horizon. FAM is owned by the three largest Wallenberg Foundations – via the holding company Wallenberg Investments AB. For more information, please https://fam.se/en.
About IPCO AB
Headquartered in Sandviken, Sweden, IPCO is an industrial process solutions company, with around 600 employees in 25 countries, which innovates, manufactures and services advanced high-performance processing equipment and steel belts, supported by a strong local sales and aftermarket presence. For more information, please visit https://ipco.com/.
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Industry Insights: Global Packaging, Spring 2025
Packaging M&A finished 2024 with robust deal flow, providing an overall strong year that surpassed the annual volumes in each of the last five years, including the prior peak year of 2021. While volumes were up, pricing (as measured as multiples of EBITDA) held constant. Early returns from the first two months of 2025 indicate a potential reversal of this volume trend; no discernable trend is yet noted in pricing.
Packaging M&A finished 2024 with robust deal flow, providing an overall strong year that surpassed the annual volumes in each of the last five years, including the prior peak year of 2021. While volumes were up, pricing (as measured as multiples of EBITDA) held constant. Early returns from the first two months of 2025 indicate a potential reversal of this volume trend; no discernable trend is yet noted in pricing.
Our key observations for this Spring 2025 edition of Industry Insights:
Transaction Volumes rebounded by 33% over 2023, eclipsing the 5-year average by a similar amount and the record year of 2021 by 6%. Each quarter was above prior year’s comparable period, with Q4-2024 volumes the highest on record at 150 transactions. Dealmakers saw through election year cycles in the US and EMEA to get transactions over the finish line in 2024.
Each Product Segment saw increased deal volume, with notable increases in Contract Packaging, Machinery & Equipment, Rigid Plastic, Rigid Other (metal, glass, wood), and Flexibles. The softest sector was Labels, which increased by only 1 transaction (2%) over 2023. The most popular product segments for M&A were Paper (98 transactions), Flexibles (68), and Distribution (62).
Buyer Composition changed significantly in 2024. In each of the last five years, Financial Sponsors (both new Platforms and Add-ons) represented over 50% of all transactions. In 2024, while Sponsors grew their volume of transactions by 12 deals, their share of Packaging Market deal flow fell to 42%. Activity among Corporate acquirers was flat on an absolute basis, falling to 19% of the mix. Volume was thus driven by Privately held businesses, which grew on an absolute basis by +107 transactions, represented 39% of the total mix.
Pricing did not reflect an overheated marketplace, with Revenue Multiples falling slightly by 0.3x versus 2023 and EBITDA Multiples holding steady at 8.0x. We believe that valuations have level set at a more sustainable average pricing of +/- 8.0x following an over-heated 2021-2022. On the whole, Financial Sponsors paid less for acquisitions versus prior years (>-1x), while Private acquirers paid +1x more.
Over the previous five years, premium valuation segments were Flexibles, Multi-format, and Machinery & Equipment and Paper-based Packaging. The only significantly discounted format was Distribution/Contract Packaging. In 2024, the various formats converged to the mean, with significant decreases in multiples among Flexibles, Paper, and Labels and noticeable price inflation in Distribution.
As we ended the year, a number of transactions hit the market with the hope of closing in 2025. We believe that many of these transactions have/will transact, but the current economic turmoil will create hesitancy on many Buyers and Sellers to initiate new processes. We anticipate a softness in volume in mid-year and look for an uptick nearer year-end, in the hope of a clearer economic and policy direction.
Recent Packaging Industry Transactions
Key Takeaways from ACG’s M&A South 2025
Mazzone’s senior professionals recently attended the ACG M&A South Conference—a great opportunity across 100+ meetings to stay ahead on current market dynamics shaping private equity and private credit activity. Here we share a summary of our insights:
Mazzone’s senior professionals recently attended the ACG M&A South Conference—a great opportunity across 100+ meetings to stay ahead on current market dynamics shaping private equity and private credit activity. Below we share a summary of our insights:
Increased Appetite in Key Sectors: Across many of our meetings, we observed common investment thesis from the private equity community. There’s growing interest in industries such as automation, advanced materials, environmental services, testing/inspection, and contractual maintenance models. These sectors are becoming increasingly attractive for investors due to their resilience, innovation, and long-term growth potential.
Debt Market Recovery: The debt market is showing incremental improvements, with a notable rise in private credit capital overhang. In 2024, we also saw renewed competition from banks, which positively impacted pricing and terms; however, in the face of tariff concerns and other market uncertainty, we are noticing heightened scrutiny throughout underwriting processes in the early stages of 2025. Additionally, deferred draw term loans are making a comeback as companies seek greater flexibility in an uncertain macroeconomic environment.
Enhanced Diligence Areas: As M&A advisors, we are guiding our clients in highlighting key factors that strengthen their position during diligence. These include:
Substantiating improving margin profiles to showcase operational efficiency.
Ensuring protective measures related to tariffs are well-documented.
Providing clear visibility of growth drivers and projections to instill confidence in potential investors.
As the market continues to evolve, we remain committed to advising clients to position themselves strategically in evaluating options and maximizing long-term value creation.
Investing in the U.S. Fastener Industry: How End Market Resilience and Favorable Attributes Make a Compelling Investment Case
The U.S. fastener industry is a diverse ecosystem of manufacturers and distributors producing and supplying products found in nearly every end market. The products are as diverse as the end markets and applications they serve as fasteners are fundamental to the assembly and integrity of countless products and structures.
Executive Summary
The U.S. fastener industry is a diverse ecosystem of manufacturers and distributors producing and supplying products found in nearly every end market. The products are as diverse as the end markets and applications they serve as fasteners are fundamental to the assembly and integrity of countless products and structures.
Macroeconomic Perspective
The U.S. fastener industry operates within a diverse economic landscape shaped by steady end-market demand, public infrastructure initiatives, and shifts in global supply chains. While manufacturing indicators like the ISM’s PMI have shown pockets of contraction, sector-specific indicators for aerospace and electronics show signs of growth. Government spending bills, including the Infrastructure Investment and Jobs Act, add further tailwinds by funneling billions into construction and transportation projects. At the same time, reshoring trends have driven renewed interest in domestic fastener suppliers, mitigating overseas supply chain risks. These macro drivers collectively underpin a generally optimistic outlook for the industry’s near-term and long-term prospects.
Industry Outlook
Industry-specific data highlights a mixed but ultimately favorable environment for fastener businesses. Fluctuating steel prices contributed to a period of unsustainable pricing momentum that has since stabilized, shifting emphasis back toward volume growth. Surveys like the Fastener Distributor Index indicate that 2023 marked a low point, with destocking and muted demand weighing on growth, but 2024 showed signs of recovery. Leading distributors such as Fastenal continue to post incremental gains, albeit at a slower rate, and industry trade events reveal cautious optimism for future demand. With renewed growth on the horizon, well-capitalized and strategically positioned firms stand to benefit most when growth accelerates.
Investment Considerations
Private equity firms and strategic buyers are increasingly drawn to the fastener space due to its fragmentation, ubiquity across end markets, and relatively stable margins. High-value attributes like customer stickiness, minimal price sensitivity, and the potential for tech-enabled services (e.g., VMI) enhance the appeal. Larger, diversified players with scale advantages can secure premium valuations, particularly when they embed themselves in customer operations through customized solutions. Resilient secular drivers such as electrification in automotive and long-term infrastructure spending reinforce the industry’s growth trajectory. Collectively, these factors create a compelling investment case anchored by attractive fundamentals and multiple exit avenues.
M&A Trends
Despite broader M&A headwinds since 2022, fastener-related deal activity has remained relatively strong, propelled by consolidators looking to broaden product offerings, expand geographically, and diversify revenue streams. A few large aggregators have led the charge, particularly in the distribution segment, which now comprises an even greater share of the transactions. Motivations for add-on acquisitions typically revolve around product expansion, geography, and diversification, with some deals focusing on adding capacity or increasing scale. As OEMs streamline their supplier bases, well-capitalized platforms are positioned to take additional market share through acquisitions. These dynamics set the stage for sustained M&A momentum in an industry still in the early stages of consolidation.
Operating Initiatives
Whether preparing for an exit or simply focusing on enhancing competitive position, companies across the fastener value chain are pursuing initiatives to improve financial performance, deepen customer relationships, and differentiate themselves. Distributors are leveraging vendor-managed inventory (VMI) and digital integration tools to embed themselves within customer supply chains and streamline replenishment processes. Technology investments—from simple scanning to automated RFID systems—reduce labor costs, improve order accuracy, and capture valuable data. Manufacturers are focusing on automation to mitigate labor challenges and maintain competitive pricing, while simultaneously expanding into lightweight materials and specialized fasteners to meet new market needs. Together, these initiatives not only strengthen operational resilience but also position businesses for stronger revenue growth and profitability.
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Mazzone advises MGroup on its recapitalization with Source Capital
Mazzone & Associates (“Mazzone”), a leading investment bank and M&A advisory firm, is pleased to announce that it acted as exclusive financial advisor to the executive team of MFLGH, Inc. (“MGroup” or the “Company”) with respect to the Company’s recapitalization with Source Capital (“Source”). The transaction ensured that the company’s strategic direction remains in the hands of its experienced leadership while providing liquidity to the founders.
Founded in the early-2000’s and headquartered in LaGrange, GA., MGroup™ is a leading brand and provider of building products and solutions in the hospitality, multi-family, student housing and other multi-unit end markets. The Company maintains a broad, unique portfolio of building products and materials for both renovation and new build projects, including shower pans, shower doors, shower surrounds & accessories, custom cabinetry, Ultracera® countertops, sinks, and flooring.
December 2024 Mazzone & Associates (“Mazzone”), a leading investment bank and M&A advisory firm, is pleased to announce that it acted as exclusive financial advisor to the executive team of MFLGH, Inc. (“MGroup” or the “Company”) with respect to the Company’s recapitalization with Source Capital (“Source”). The transaction ensured that the company’s strategic direction remains in the hands of its experienced leadership while providing liquidity to the founders.
Founded in the early-2000’s and headquartered in LaGrange, GA., MGroup™ is a leading brand and provider of building products and solutions in the hospitality, multi-family, student housing and other multi-unit end markets. The Company maintains a broad, unique portfolio of building products and materials for both renovation and new build projects, including shower pans, shower doors, shower surrounds & accessories, custom cabinetry, Ultracera® countertops, sinks, and flooring.
Bo Burdette, CEO of MGroup™, highlighted: “This deal was a significant milestone for our company. Stuart and the Mazzone team played a pivotal role in shepherding the deal through every stage, including structuring the transaction, securing a capital partner, negotiating terms, expediting diligence and facilitating a successful closing. Their understanding of our products and end markets, coupled with their hands-on approach, made all the difference. Our new structure allows us to build on the strong foundation laid by our founders and continue delivering exceptional value to our customers and employees.”
Dave and Patti Murray, who have played pivotal roles in shaping MGroup™’s foundation and growth, expressed their confidence in the new ownership team. “We are incredibly proud of what we have built with MGroup™ and are thrilled to see the company’s future in the capable hands of Bo, Drew, and Scott.”
“We are extremely proud to have played an integral role in this transaction, which underscores our industry and expertise in executing complex transactions,” noted Stuart Sanford, Director at Mazzone. “This deal not only reflects the strong market position of MGroup™ but also highlights the commitment of the executive team to its future. Our team is thrilled to have supported such a dynamic transition.”
Joe Rodgers, Managing Director at Source Capital highlighted “we loved working with Stuart Sanford at Mazzone and Bo to get this over the finish line and are excited to partner with Bo and the other executive team members. MGroup™ has an impressive track record of providing best-in-class products and services to its growing customer base, and we look forward to supporting MGroup™ in this next chapter.”
Williams Business Law served as legal advisor on the transaction.
Founded in the early-2000’s and headquartered in LaGrange, GA., MGroup™ is a leading brand and provider of building products and solutions in the hospitality, multi-family, student housing, and other multi-unit end markets. The Company maintains a broad, unique portfolio of building products and materials for both renovation and new build projects, including shower pans, shower doors, shower surrounds & accessories, custom cabinetry, Ultracera® countertops, sinks, and flooring. Known for its commitment to quality, innovation, sustainability and customer satisfaction, MGroup™ continues to set benchmarks in the Hospitality and Multi-Unit end markets. For more information about MGroup™ and its offerings, please visit www.mgroupcorp.com
Source Capital is an Atlanta, GA based private investment firm that has been providing flexible equity and debt capital to lower middle market companies for over 20 years. The firm has a value-added investing approach that brings (i) patient capital focused on long-term value creation; (ii) collaborative partnerships with management teams, founders/owners, private equity investors and independent sponsors; and (iii) strategic and operational resources to its portfolio companies. To learn more about Source Capital or to discuss a new equity or debt investment opportunity, please reach out to a member of our investment team or visit www.source-cap.com.
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Industry Insights: Global Packaging Industry, Fall, 2024
Through September, 2024 has delivered on the hoped-for rebound in volumes of packaging transactions and stabilization of valuations. While certainly not approaching the peak of activity and pricing seen in 2021, the market has overall been healthier than in 2023.
Through September, 2024 has delivered on the hoped-for rebound in volumes of packaging transactions and stabilization of valuations. While certainly not approaching the peak of activity and pricing seen in 2021, the market has overall been healthier than in 2023.
Our key observations for this edition of Industry Insights:
Through Q3-2024, transaction volumes rebounded by 14% over the same period of 2023, roughly in line with 2022 (-2% vs 3Qs 2022). This improvement occurred in Q1 and Q2, which produced the highest quarterly volumes since 2022.
Third quarter volumes, however, softened slightly. Anticipation of interest rate reductions in both North America and Europe likely held some financial sponsors at bay, and the pending election in the US may also be creating uncertainty which is keeping buyers in the wings. We view these as transitory issues and anticipate additional volume growth in 2025.
Segment outperformers (in volume) were the same as noted in our Winter 2024 edition - Machinery & Equipment and Rigid (non-plastic) packaging. Rigid Plastic Packaging also notched an increase in activity. Those segments with lesser activity include Flexibles and Labels.
On a run-rate basis through Q3, corporate buyers, new sponsor platforms, and sponsor add-ons were less active in 2024 versus 2023. The big change was the appetite from private buyers, which is on pace to double activity in disclosed transactions.
On the limited year-to-date sample, it appears that average deal pricing (as measured by EBITDA multiples) stabilized in 2024 after falling for 2 consecutive years, with multiples roughly equal to 2023’s level.
Over the last five years, premium valuations were observed among Flexibles, Machinery & Equipment, and Rigid Packaging (non-plastic); discounted (less than average) pricing was noted among Distribution / Contract Packaging, Paper, and Labels. This has generally held true in 2024 but with some interesting longer-term trends emerging among the segments.
As noted previously, there remain a number of transactions that have been put “on hold.” The economic and political environments are creating uncertainty which continues to weigh on pricing, and if sellers are looking for a return to 9x+ multiples, it appears that they will continue to wait well into 2025+.
Recent Packaging Industry Transactions
Mazzone advises ValorBridge Partners on its investment in Atlas Carts
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to ValorBridge Partners (“ValorBridge”) with respect to its investment into Atlas Carts (“Atlas”).
Formed in 2022 by industry veterans, Atlas is a fast-growing manufacturer of golf carts and low-speed vehicles. The Company offers a range of all-electric models that are fully customizable for use on and off the golf course.
July 2024 Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to ValorBridge Partners (“ValorBridge”) with respect to its investment in Atlas Carts (“Atlas”).
Formed in 2022 by industry veterans, Atlas is a fast-growing manufacturer of golf carts and low-speed vehicles. The Company offers a range of all-electric models that are fully customizable for use on and off the golf course.
Sanjay Kopay, co-CEO of Atlas commented, “ValorBridge shares our vision of driving growth and becoming a market leader, and we look forward to collaborating with their team.” Mark Messick, Co-CEO of Atlas noted, “We are delighted to partner with ValorBridge as they support us in in the execution of our growth initiatives.”
“We’re excited to partner with the Atlas team. Atlas has already cemented itself as an innovator in the golf cart industry, and we are excited for their future,” remarked Chris Durham, General Manager at ValorBridge.
Dustin Ramsey, Director at Mazzone, noted, “Mark and Sanjay have accomplished in a few years what many spend their entire careers pursuing. We eagerly anticipate the success that their partnership with ValorBridge will bring in this next chapter.”
ValorBridge Partners is an Atlanta-based private evergreen holding company that owns, operates, and invests in companies in a wide range of industries. With a track record spanning over two decades, ValorBridge possesses substantial entrepreneurial, operational, and classic value investing expertise. Its long-term investment orientation has positioned the company as a strong partner in providing capital to growing businesses. ValorBridge also offers a wealth of strategic guidance and experience gained from successfully growing companies at all stages of the business life cycle.
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Director Stuart Sanford Hosts Panel at AWA Virtual Forum
Stuart Sanford, Director at Mazzone, hosted a panel discussion at AWA’s M&A Executive Forum and was joined by executives leading packaging and label companies through M&A and global expansion initiatives. Continue reading to view the recording.
Stuart Sanford, Director at Mazzone, hosted a panel discussion at AWA’s M&A Executive Forum and was joined by executives leading packaging and label companies through M&A and global expansion initiatives. Bringing perspectives of Corporate Investors, CEOs and a leading Investment Banker in Mexico, this panel explored impacts from elevated interest rates, geopolitical risks, near-shoring, ever-changing focuses on due diligence and other topics including:
Major themes impacting M&A in the packaging and label markets
Underlying data on cross-border activity and examples of corporations executing cross-continent strategies.
How the disconnect in public markets and M&A are impacting corporate development decision-making
Impacts from recent trends on due diligence processes
Lessons from expansions into new geographic markets
Impacts from recent elections in Mexico for near shoring trends
How EPR and other sustainability drivers are impacting M&A and investments
Alternatives to traditional M&A for geographic expansion
Equity and debt capital markets support for cross-border M&A and investment in Mexico and Latin America
If you were unable to attend and are interested in learning more about cross-border M&A and dynamics impacting corporate dynamic initiatives in this industry, you may view a recording of the panel below.
Panelists:
Danny Allouche: SVP & Chief Strategy & Corporate Development Officer at Avery Dennison
Virag Patel: CEO of ePac, LLC
Max Baumann: Finance Business Partner- M&A and Manufacturing at ProAmpac
Gilberto Sotelo: Managing Director at Alea Capital
Navigating Cross-Border M&A: A Guide for Key Stakeholders Evaluating Opportunities in North America
This executive summary, crafted from the perspective of an experienced investment banking team, is designed to assist buyers navigating the dynamic landscape of cross-border M&A transactions. In 2022 and 2023, approximately 30% of Mazzone’s transactions were cross-border, with Mazzone advising clients from the U.S., Europe, the Middle East, and Asia, in the closing of transactions in the U.S., Mexico, and Europe. From understanding the dynamics and common pitfalls to implementing strategies for success, this guide aims to empower business leaders to make informed decisions and navigate the complexities where a buyer based in Europe, the Middle East, Asia, South America or Africa is looking to acquire a North America-based business.
Executive Summary
This executive summary, crafted from the perspective of an experienced investment banking team, is designed to assist buyers navigating the dynamic landscape of cross-border M&A transactions. In 2022 and 2023, approximately 30% of Mazzone’s transactions were cross-border, with Mazzone advising clients from the U.S., Europe, the Middle East, and Asia, in the closing of transactions in the U.S., Mexico, and Europe. From understanding the dynamics and common pitfalls to implementing strategies for success, this guide aims to empower business leaders to make informed decisions and navigate the complexities where a buyer based in Europe, the Middle East, Asia, South America or Africa is looking to acquire a North America-based business.
Common Motivations for Cross-Border M&A in North America
In an era marked by globalization, overseas business owners are increasingly exploring opportunities to expand their portfolios by acquiring businesses in North America. The North American market, renowned for its innovation, diverse industries, and robust economy, offers an enticing landscape for strategic acquisitions. Below are a few common motivations we have observed in recently closed transactions where international leadership teams are looking to enter or expand their footprint into North America.
Near-shoring Trends in a Post-COVID world: Mentions of reshoring in earnings calls were up 128% in the first quarter of 2023, compared with first quarter of 2022. From 2019 to 2023, there was a 23% decline in U.S. companies that list China as a top 3 sourcing country. In 2023, Mexico surpassed China as the largest exporter of goods to the United States.
Customer Supply Chain Demands: “Made in the U.S.” and proximity to North America customers are key motivations whether the Buyer sees this as an opportunity to de-risk supply chain, capture additional wallet share or potentially just maintain business with its current customer base.
Economic Diversification and Global Expansion: Overseas companies, seeking to diversify their revenue streams and expand their global footprint, were increasingly looking towards North America, which represents one of the world's largest and most dynamic markets.
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Spotlight: Cross-Border Transactions in the Packaging Industry
Mazzone’s Packaging Deal Database tracked 70 cross-regional transactions in 2023, which is on par with 2021 and 2022 at 18% of the overall sample. Including cross-border transactions within regions shows a much more active cross-border marketplace, totaling 142 transactions (40% of all Packaging Transactions in 2023).
Mazzone’s Packaging Deal Database tracked 70 cross-regional[1] transactions in 2023, which is on par with 2021 and 2022 at 18% of the overall sample. Including cross-border transactions within regions shows a much more active cross-border marketplace, totaling 142 transactions (40% of all Packaging Transactions in 2023).
Europe/Middle East/Africa (EMEA) targets saw the highest number of cross-border deals, split 60% within EMEA and 40% from outside the region. The most active non-EMEA acquirers were from Japan; within EMEA, Germany, France and Austria combined for 50% of cross-border deals.
51% of acquirers of Rest of World (ROW) targets were beyond national borders. Cross-regional deals were more common in ROW, with European buyers the most active.
On a proportional basis, North America targets saw the least amount of cross-border activity, with only 16% of acquirers outside of national borders. Non-North American acquirers were predominantly European.
As noted in our Winter Industry Insights, we see no premium or discount for cross-regional or cross- border transactions. Deal values are driven more by product segment, buyer type, deal motivation, and the pricing prevalent in target markets (regardless of buyer geography).
As the strategic value of a cross-border transaction is often significant to an acquirer, this raises the question of why no premium is ascribed to these transactions. We suggest that while the strategic value may warrant a premium, the additional risks in consummating such a transaction neutralizes that premium. Mazzone’s experience in cross-border transactions has revealed differences that must be carefully managed in these situations – not simply language and time zones, but differences in negotiation styles; legal, tax, and accounting standards; due diligence processes; regulatory approvals; and transaction timelines. All this needs to be carefully navigated to successfully close a cross-border deal.
Mazzone’s Cross Border Experience
In 2022 – 2023, approximately 30% of our transactions were cross-border, including select transactions featured below, with Mazzone advising clients from the US, Europe, the Middle East, and Asia, in the closing of transactions in the US, Mexico, and Europe.
[1] Our three tracked regions include (North America (NA), Europe/Middle East/Africa (EMEA), and Rest of World (ROW)
Industry Insights: Global Packaging Industry, Winter 2024
Relieved that much of the world’s economy avoided recession in 2023, many in the packaging industry are nonetheless happy to have 2023 in the rearview mirror. While not necessarily a retraction, many in our industry dealt with uninspiring volume, increasing costs of labor, and increasing costs of financing. This lackluster economic backdrop and recession uncertainty, coupled with significantly increased interest rates, hit the M&A transaction market hard.
Relieved that much of the world’s economy avoided recession in 2023, many in the packaging industry are nonetheless happy to have 2023 in the rearview mirror. While not necessarily a retraction, many in our industry dealt with uninspiring volume, increasing costs of labor, and increasing costs of financing. This lackluster economic backdrop and recession uncertainty, coupled with significantly increased interest rates, hit the M&A transaction market hard.
Our key observations for this edition of Industry Insights:
Transaction Volumes continued their decline from 2021, with major segments witnessing double-digit declines. Month-to-month data provide no firm indication that volumes are yet to rebound. There were, however, pockets of positive momentum in Machinery & Equipment, Multi-material Converters, and Rigid (non-plastic) packaging.
Activity dropped across all Buyer Types (corporate, private, sponsor). The one ray of hope was an actual uptick in new sponsor-led platform formation – with new platforms slightly surpassing pre-pandemic levels.
Average deal pricing (as measured by EBITDA multiples) slid for the second year in a row, falling by more than one turn of EBITDA to 8.0x. All segments are trading at or below their five-year average pricing. This may signal an opportunity for motivated acquirers to move back into the market (see above – new platforms).
It is now clear that the aberration was not suppressed numbers in 2023, but rather over exuberance in prior years (primarily 2021). 2023’s volumes and pricing more closely resemble the Covid year of 2020. With the market anticipating central banks to cut interest rates in 2024, there’s optimism that the opportunities for acquisitions can improve, and a solidifying of demand/pricing could also translate to normalization of the M&A environment. When we will see the results of this, however, is not yet clear.
There were a number of transactions that were brought to market in 2023 but did not meet the expectations of the Sellers and remain on hold. It remains to be seen what will happen first: (i) Sellers adjust their expectations so that these deals can close, or (ii) if falling interest rates and an improved economic environment return multiples to 9.0x+. If we must wait for an improved environment, deal volumes are not likely to rebound meaningfully until 2025.
While short of 2021’s blow-out year for new Sponsor Platforms, 2023 saw a 15% increase in new platform formation by financial sponsors, bringing new platform formation in line+ to activity in 2019 - 2020. Perhaps sensing a “buy low” opportunity, sponsors executed buyouts at a 2.1x discount to multiples that they paid in 2022. While still early in the cycle, this is an indication that we may have reached a “bottom” and activity may be poised to bounce back.
Recent Packaging Industry Transactions
Unlocking Success: Navigating the Waves of Private Equity Trends and Beyond
Coming out of an annual review of private equity buyouts and recapitalizations, we delve into the major trends impacting deal volumes, valuations, due diligence, and the credit environment in private equity throughout 2023. Understanding these trends is crucial for anticipating the trajectory of private equity deal activity as we venture into 2024.
Coming out of an annual review of private equity buyouts and recapitalizations, we delve into the major trends impacting deal volumes, valuations, due diligence, and the credit environment in private equity throughout 2023. Understanding these trends is crucial for anticipating the trajectory of private equity deal activity as we venture into 2024.
Deal Volumes: Balancing Quality and Quantity
In 2023, private equity deal volumes have been marked by a delicate balance between quality and quantity. While the market has seen robust activity, investors are placing a heightened emphasis on securing deals that align with strategic objectives. Quality targets that offer resilience and growth potential are in focus, leading to a nuanced approach to deal selection.
Global Private Equity Transaction Activity (Source: Pitchbook)
Although many pundits suggest private equity activity has fallen off the cliff, deal volumes in 2023 still exceeded pre-2021 levels. With optimism in a soft-landing here in the U.S. and improving credit markets, market participants are optimistic that 2023 levels will be met, if not exceeded.
The total value of transactions saw a further drop as the the debt capital markets impacted private and institutionally backed owners of larger companies more heavily versus those in the lower middle market. Many of these owners have stayed on the sidelines for the exit.
Softness in commercial activity for some owners/operators (see: destocking, consumer discretionary markets, building products/services, et. al.) paused many owners/operators to come to market in 2023; however, anticipation of more normal periods ahead in 2024 and 2025 has created optimism for transactions going forward.
Private Equity Activity Heavy in South/Southeast
As we enter the 2024 conference season, we will be exhibiting and attending ACG's M&A South with over 200 private equity groups looking for more deal flow and transacting here in the South/Southeast U.S. This region has continued to be the most active region sought after by private equity, representing over 31% or nearly 1/3 of all PE transactions in 2023. This is relatively unsurprising as this region has the led the charge for PE activity over the last few years.
PE Transactions by Region - U.S. (Pitchbook)
Valuations: Keeping Perspective
Valuations have been a focal point in 2023, with a dichotomy between buyers and sellers. As cost of capital has increased across the world, private equity and buyers across the landscape have adjusted valuations downwards to meet equity returns and sellers have been reticent to move off record valuations seen in 2021. For owners out there looking to transact, striking the right balance between growth potential and realistic valuations is paramount.
Median North America and Europe PE buyout EV/EBITDA multiples (Pitchbook)
Key Takeaways:
Keeping Perspective: Median valuations dropped ~1.6x EV/EBITDA in North America and Europe, comparing 2022 to 2023. 2023 valuations ended up slightly below the 10 year avg. of 11.1x EV/EBITDA. This past year saw the PE buyout world revert to the norm versus what many of the pundits may suggest.
Valuation Trends by Region: European buyout valuations felt the global credit and macro impacts more than North American buyouts where valuations dropped to lowest levels since 2016. Although North America buyouts dropped from record levels of 2022 and 2021, valuation levels still exceeded every other period (2013-2020) over the last ten years.
Credit Market Moves
The most impacted segment of transactions were larger LBOs which saw average leverage decrease by ~1.5x. During the overheating of the debt capital markets post-COVID, 6.0x+ Debt/EBITDA or leverage for $20mm EBITDA businesses and above was expected; however, leverage on debt transactions averaged ~4.5x. Also, lenders were more cautious in underwriting LBOs throughout 2023 with increased fixed charge ratios and an uncertain macro environment. Debt/EV ratios fell over 500 basis points to 45.7%, the lowest debt/EV ratio over the last 10 years.
Debt Percent (LCD) of NA and Europe PE buyouts
Private Equity Carveouts are Building Momentum
Since Q4 2021, many have been predicting carveouts to increase; however, momentum has started to ramp up more quickly here in the last two quarters of 2023. Since 2018, only two quarters saw higher percentages of PE carveout activity than Q4 2023.
Similarly, we are seeing private equity groups reach out more frequently to explore carveouts of non-core operations within their core platforms, many of whom have been very active on acquisitions over the last 10 years. Anecdotally, we are seeing this more frequently discussed as part of plans for a greater exit down the line or recapitalization anticipated here in 2024. We have worked on over 4 carveouts since later in 2022 and anticipate this activity to continue.
PE Carveouts as a % of Buyouts (Pitchbook)
Due Diligence Trends: Tech-Enabled and Return to Comprehensive Diligence
Due diligence processes are undergoing a tech-enabled transformation. Dataroom and other due diligence workstreams continue to explore more streamlined approaches to the deal process. ESG diligence has gained momentum, especially from global private equity groups and those overseas buyers with more regulatory and oversight reporting required. There was a period in 2021 and early 2022 where diligence red flags were quickly dissolved; however, these issues are impacting deals and valuation more heavily today versus the recent past.
Anticipated Impact on 2024:
Looking ahead to 2024, everyone is watching the credit markets and the lending environment to see how aggressively these moves will impact leverage, cost of capital and valuations. We are seeing many smart owners and operators work with their advisors early to work on what they can control and put their business in the best position to seek a liquidity or growth equity transaction. We expect these trends to continue.
Mazzone advises Chicago Industrial Fasteners on its sale to AFC Industries, a portfolio company of Bertram Capital Management
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to Chicago Industrial Fasteners, LLC (“CIF”) with respect to its sale to AFC Industries (“AFC”), a portfolio company of Bertram Capital Management. This is the fifth industrial transaction completed by Mazzone in 2023.
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to Chicago Industrial Fasteners, LLC (“CIF”) with respect to its sale to AFC Industries (“AFC”), a portfolio company of Bertram Capital Management. This is the fifth industrial transaction completed by Mazzone in 2023.
CIF is a leading distributor of specialty and standard fasteners throughout North America. Based out of West Chicago, IL, CIF serves OEMs, hardware providers, and material fabricators across a diverse range of industries including heavy truck, wind and solar generation, defense, and automotive. Products supplied span from multi-processed blueprint custom parts to high-volume common fasteners.
“This new chapter with AFC opens the door for us to continue to expand the solutions we can provide for our customers. It is exciting to have more resources to keep building on the foundation of service, teamwork, and partnership that we have established over the past 20 years,” noted John Price, cofounder of CIF. “The Mazzone team was integral at all stages of the sale process and helped us close quickly and efficiently.”
Cathy Price, co-founder of CIF commented, “Mazzone began advising us more than a year before we started the sale process. Their advice helped strengthen our business, which allowed us to be better prepared for the sale process and achieve an extraordinary outcome.”
“In CIF we found a business built around the same core commitment to providing excellent service that we strive for at AFC," said AFC CEO Kevin Godin. "The more we got to know John and Cathy and their team the more obvious it was that this was a great fit. Both of these businesses are better together, each brings key resources and capabilities that strengthen the other.”
Dustin Ramsey, Director at Mazzone, noted, “It was an honor working with John and Cathy on the transaction. They were passionate about finding the right home for their business and team, and we believe AFC is the right partner for them.”
About CIF
Chicago Industrial Fasteners was founded in 2003 and specializes in supplying difficult to produce, and often low-volume, products that many other competitors are unable or unwilling to provide. CIF’s robust vendor network and on-hand inventory selection allows them provide mission critical parts to customers on short notice, keeping their operations moving. For more information, please visit cifbolts.com.
About AFC
Headquartered in West Chester, OH, AFC Industries is a dynamic organization dedicated to providing supply chain management solutions on small components and tooling for a diverse base of manufacturers and assemblers across a broad range of industries. Through its experienced team and global resources, AFC excels at making customer manufacturing and assembly processes more efficient and cost-effective. For more information, please visit afcind.com.
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Mazzone advises Pamarco on the divestiture of its Palmyra operations to Precision Roll Solutions, a portfolio company of Guardian Capital Partners
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as the exclusive financial advisor to Pamarco Global Graphics, Inc. (“Pamarco” or the “Company”), a leading provider of proven technology solutions for the global packaging, industrial coatings, commercial printing, and original equipment manufacturing industries, on Pamarco’s divestiture of certain mechanical engraving and gravure print assets previously located in Palmyra, NJ to Precision Roll Solutions (“PRS”), a portfolio company of Guardian Capital Partners.
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as the exclusive financial advisor to Pamarco Global Graphics, Inc. (“Pamarco” or the “Company”), a leading provider of proven technology solutions for the global packaging, industrial coatings, commercial printing, and original equipment manufacturing industries, on Pamarco’s divestiture of certain mechanical engraving and gravure print assets previously located in Palmyra, NJ to Precision Roll Solutions (“PRS”), a portfolio company of Guardian Capital Partners.
Pamarco’s presence in Palmyra was established through its acquisition of Armotek Industries, Inc. in 1996. Since, Pamarco Palmyra has established a strong reputation as a producer of rolls used by customers in the engraving, gravure, and embossing industries, demonstrated by the Company’s long-tenured blue-chip customer relationships spanning a wide array of pharmaceutical, consumer staples, and other industrial end-market applications.
Allan Li, CEO of Pamarco, noted, “Firstly, Pamarco is proud of the operations and the brand that our employees have built in Palmyra over the past 25 plus years. Ultimately, the divestiture of the niche assets held in Palmyra will allow Pamarco to focus on its core competencies in the laser engraved anilox and engineered technology categories, which aligns with Pamarco’s long-term growth strategy. The Mazzone team proved again to be essential in working through the intricacies of a transaction that involved a complex transition period and a variety of unique nuances.”
John Burgess, Pamarco’s President, commented, “The sale of these assets to PRS is a strategic move made in conjunction with the recent acquisition of TLS in Germany to allow Pamarco to focus and strengthen its worldwide anilox business. We appreciate the Mazzone team’s dedication to executing both of these transactions in an efficient and effective manner.”
Dustin Dawson, Vice President at Mazzone, added, “We are pleased to announce another strategic transaction with the Pamarco team, particularly as this deal falls right on the heels of the October acquisition of TLS. Pamarco is rapidly positioning itself as the global leader in the laser engraved anilox technologies category, and this divestiture is one more step towards that ultimate goal.”
Managing Director Maury Bell and Vice President Dustin Dawson were lead team members on the transaction.
About Pamarco
Founded in 1946, Pamarco is a leading provider of proven technology solutions for the global printing, packaging, and converting industries. Pamarco designs, manufactures, and distributes a broad portfolio of aftermarket products that includes anilox and gravure rollers, carbon fiber chambered doctor blades, and precision equipment and accessories for print systems. Pamarco services a variety of growing markets, including global packaging, industrial coatings, commercial printing and OEMs in North America, Europe, and other global regions using its leading brand names and multiple channels to market. Pamarco’s established premium brands, including E-Flo and ThermaFlo anilox rolls, Absolute doctor blades, and Sentinel ink management systems, represent the industry standard in quality, efficiency, and precision. For more information, please visit www.pamarco.com.
About PRS
PRS is a full-service provider of highly-engineered precision roll solutions and related process componentry utilized within a variety of manufacturing environments. The Company’s components are used to coat, cut, convey, press, heat, cool, emboss, and engrave various substrates which supports the production of thousands of end-use products spanning a wide array of consumer products, life sciences, and other industrial end-market applications. For more information, please visit www.precisionrollsolutions.com.
About Guardian Capital Partners
Guardian Capital Partners is an operationally focused private equity firm based in suburban Philadelphia. Guardian makes control investments in lower middle market consumer, niche manufacturing, and specialty business services companies. Guardian partners with management teams to provide equity capital to fuel the growth of privately held businesses. Guardian believes the private equity experience and complementary skill sets of the Guardian team provide a unique combination of operating and finance capabilities resulting in certainty of execution and meaningful long-term value creation for its portfolio companies. For more information, please visit www.guardiancp.com.
Mazzone advises Pamarco on its acquisition of TLS
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to Pamarco Global Graphics, Inc. (“Pamarco” or the “Company”), a leading provider of proven technology solutions for the global packaging, industrial coatings, commercial printing, and original equipment manufacturing industries, on the further expansion of its European presence through the acquisition of TLS Anilox GmbH and TLS Invest GmbH (together “TLS”), a leading provider of anilox rolls and related equipment headquartered in Salzkotten, Germany.
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as exclusive financial advisor to Pamarco Global Graphics, Inc. (“Pamarco” or the “Company”), a leading provider of proven technology solutions for the global packaging, industrial coatings, commercial printing, and original equipment manufacturing industries, on the further expansion of its European presence through the acquisition of TLS Anilox GmbH and TLS Invest GmbH (together “TLS”), a leading provider of anilox rolls and related equipment headquartered in Salzkotten, Germany.
John Burgess, Pamarco’s President, noted, “For Pamarco this acquisition represents a key strategic objective of ours to have a full service anilox producer in the heart of the European market to better service the converting and OEM customer base. TLS has an excellent quality and service reputation and a world-class sales & distribution network, which we will combine with our own to give us unsurpassed coverage in Europe and beyond. The Mazzone teams’ counsel and analysis during this acquisition process was invaluable.”
Allan Li, CEO of Pamarco and Director at Kotts Capital Holdings, the family office holding company that owns Pamarco, added, “We are extremely excited to welcome TLS, its employees, and its customers to the Pamarco family, and we look forward to strengthening our position as the trusted supplier to our customers by providing value added products and services to both new and existing customers globally. We’ve worked with Mazzone and its team members for over 20 years on numerous deals, and the team’s guidance proved again to be instrumental, particularly given the complexities involved with an international acquisition in Germany.”
Dustin Dawson, Vice President at Mazzone, commented, “It was a pleasure working with the Pamarco team to bring this one to a happy outcome. The TLS deal exemplifies Pamarco’s acquisition strategy of growing the Company’s global footprint and diversifying its end market exposure, while adding to its portfolio of leading technologies.”
Managing Director Maury Bell and Vice President Dustin Dawson were lead team members on the transaction.
The transaction marks Mazzone’s eighth cross-border deal since 2019.
About Pamarco
Founded in 1946, Pamarco is a leading provider of proven technology solutions for the global printing, packaging, and converting industries. Pamarco designs, manufactures, and distributes a broad portfolio of aftermarket products that includes anilox and gravure rollers, carbon fiber chambered doctor blades, and precision equipment and accessories for print systems. Pamarco services a variety of growing markets, including global packaging, industrial coatings, commercial printing and OEMs in North America, Europe, and other global regions using its leading brand names and multiple channels to market. Pamarco’s established premium brands, including E-Flo and ThermaFlo anilox rolls, Absolute doctor blades, and Sentinel ink management systems, represent the industry standard in quality, efficiency, and precision. For more information, please visit www.pamarco.com.
About TLS
Since 2009, TLS has provided high-quality, innovative anilox rolls and anilox roll sleeves with solutions in the printing and coating industry that are customized for the customer. TLS experts have developed an extensive range of individual laser engravings that are designed to meet even the most demanding requirements of modern flexographic printing: high-quality solid surfaces, fine lettering, reverse texts, opaque white, multi-color printing with low color gamut, etc. TLS aims to continuously push the limits in engraving technology. For more information, please visit www.tlsanilox.com.
Key Takeaways from Pack Expo 2023
Managing Director Jonathan White shares his key takeaways from Pack Expo Las Vegas, where the mood was slightly subdued due to flattish volumes reported by companies across the Packaging Industry. Lower volume was somewhat mitigated by improved margins resulting from decreases in cost inputs, which have yet to be passed along to customers. However, customers will eventually be clawing back these cost decreases, and Mazzone is keeping a close eye on the timing of these claw backs versus the rebound in volumes to determine the best time for our clients to enter the marketplace.
Managing Director Jonathan White shares his key takeaways from Pack Expo Las Vegas, where the mood was slightly subdued due to flattish volumes reported by companies across the Packaging Industry. Lower volume was somewhat mitigated by improved margins resulting from decreases in cost inputs, which have yet to be passed along to customers. However, customers will eventually be clawing back these cost decreases, and Mazzone is keeping a close eye on the timing of these claw backs versus the rebound in volumes to determine the best time for our clients to enter the marketplace.
In our latest edition of Industry Insights: Global Packaging, we noted that Packaging Industry transaction volume and pricing have been down, and this was reflected anecdotally by companies we spoke with at Pack Expo that have transactions lingering in the marketplace due to the bid-ask gap between buyers and the sellers. Mazzone believes buyers are being conservative on valuations due to aforementioned low volumes and a concern over margins—with cost input decreases impacting margins in the present, is the data sufficiently transparent for the buyer to understand the sustainable margin of the business going forward? We saw indications of rebounding activity late this summer but don’t anticipate a sustained shift until Q1 of 2024 when mounting pressures to complete transactions force dealmakers to find a way to get the deal done.
Industry Insights: Global Packaging Industry, Summer 2023
As the Industry heads to Pack Expo in September, Mazzone & Associates provides our semi-annual update on Mergers & Acquisitions activity in the Packaging Industry.
As the Industry heads to Pack Expo in September, Mazzone & Associates provides our semi-annual update on Mergers & Acquisitions activity in the Packaging Industry. Key observations for this edition of Industry Insights:
Transaction Volumes are down from 2022: -7% for the trailing four quarters (June 2023) and -13% for the annualized run rate. There are signs, however, that volumes will bounce back in the second half of this year (p. 2).
EBITDA Multiples are down year-over-year, normalizing to the mean of the last five years. While EBITDA Multiples are down, Revenue Multiples are up, signaling shifts in profitability of transacted companies (p. 4).
Financial Sponsors, both as strategic add-on acquirers and new platform buyers, remain very active, whereas Private and Corporate Buyers are being less aggressive (p. 5).
Overall Cross-Regional M&A is consistent with prior years, but shifts in Target Geographies favor EMEA and ROW (Rest of World) versus North America (p. 6).
Public Company valuations have not shifted significantly over the last year and remain at the lower end of their trading range for the past decade (pp. 6-7).
Recent Packaging Industry Transactions
Mazzone advises FINE Parking Group and ValorBridge Partners on FINE’s acquisition of Preflight Hobby
Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as the exclusive financial advisor to FINE Parking Group (“FINE”) and ValorBridge Partners (“ValorBridge”) with respect to FINE’s acquisition of PreFlight Airport Parking’s facility at William P. Hobby Airport in Houston, Texas (“PreFlight Hobby”).
PreFlight Hobby is a 1,400-space multi-story parking garage that is conveniently located next door to FINE’s existing facility at the Houston Hobby airport; the combination of the facilities would establish FINE as the premier off-airport parking operator at Hobby and increase brand presence in the greater Houston market.
“We are excited to announce the addition of another location to our growing portfolio of off-airport parking facilities,” said Chris Amburgy, CEO of FINE. “PreFlight Hobby’s location, being adjacent to FINE’s existing facility at Hobby airport, is a particularly strong strategic fit. Opportunities for shared services, expanded capacity, and operational efficiencies across the facilities provide unique upside, and will ultimately allow the FINE brand to further improve the parking experience for travelers in the Houston area.”
July 2023 Mazzone & Associates (“Mazzone”) is pleased to announce that it acted as the exclusive financial advisor to FINE Parking Group (“FINE”) and ValorBridge Partners (“ValorBridge”) with respect to FINE’s acquisition of PreFlight Airport Parking’s facility at William P. Hobby Airport in Houston, Texas (“PreFlight Hobby”).
PreFlight Hobby is a 1,400-space multi-story parking garage that is conveniently located next door to FINE’s existing facility at the Houston Hobby airport; the combination of the facilities would establish FINE as the premier off-airport parking operator at Hobby and increase brand presence in the greater Houston market.
“We are excited to announce the addition of another location to our growing portfolio of off-airport parking facilities,” said Chris Amburgy, CEO of FINE. “PreFlight Hobby’s location, being adjacent to FINE’s existing facility at Hobby airport, is a particularly strong strategic fit. Opportunities for shared services, expanded capacity, and operational efficiencies across the facilities provide unique upside, and will ultimately allow the FINE brand to further improve the parking experience for travelers in the Houston area.”
Chris Durham, General Manager of ValorBridge, added, “The acquisition of PreFlight Hobby falls solidly within our thesis for FINE’s expansion; a greater presence in the Houston market will drive customer loyalty as more travelers are able to experience FINE’s stress-free, high-end parking experience. Mazzone has long provided corporate development advisory services across our portfolio, and the attentive service provided throughout this latest acquisition only reiterates the Mazzone team’s expertise in seamlessly executing transactions.”
Kansas City-based UMB Financial Corporation provided senior debt financing on the acquisition. Terms of the transaction were not disclosed.
Dom Mazzone, Managing Director; Dustin Dawson, Vice President; and Ryan Durham, Associate were lead team members on the transaction.
About FINE
FINE Parking Group is the owner and operator of five premium off-airport parking facilities located at Denver International Airport, Tulsa International Airport, and William P. Hobby and George Bush Intercontinental Airports in Houston. FINE’s emphasized focus on the customer experience yields the trust and consistency that has facilitated the growth of a loyal customer base across the Company’s geographies. On-site auto detailing, valet parking, an easy-to-use customer app, and loyalty programs are just a few of the additional resources that the FINE brand is known for.
FINE continues to actively seek opportunities for the acquisition or development of airport and urban parking facilities in markets with favorable and sustainable growth characteristics. Please contact Dustin Dawson at ddawson@mazzoneib.com with any prospective opportunities.
About ValorBridge Partners
ValorBridge Partners is an Atlanta-based private evergreen holding company that owns, operates, and invests in healthcare, financial services, real estate, and industrial supplies and service companies. With a track record spanning over two decades, ValorBridge’s uncommon combination of substantial entrepreneurial, operational, and classic value investing experiences, as well as its long-term orientation as an investor, have positioned the company as a strong partner in providing capital to growing companies. ValorBridge also offers a wealth of strategic guidance and experience gained from successfully growing companies at all stages of the business life cycle.