PwC Global Forest, Paper, & Packaging Deals: 1Q 2017

Global Merger and Acquisition activity in the Forests, Paper, and Packaging sector in 1Q 2017 saw an increase in deal value relative to 4Q 2016, said PwC July 7. A total of 23 M&A deals were announced during Q1 2017 with a total value of US$4.2 billion and an average (median) deal size of approximately US$14.7 million. This compares to 39 deals in Q4 2016 with a total value of US$3.4 billion and an average (median) deal size of approximately US$27.3 million.

In comparison to 1Q 2016, there was an increase in 1Q 2017 in terms of both deal value and deal volume.

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The distribution of announced deals in 1Q 2017 (based on total deal value) was geographically focussed on the Americas and Asia/Pacific regions, said PwC.
In the Americas, deal volume decreased while total deal value increased from 4Q 2016. There were 3 announced deals in 1Q 2017 with a total deal value of approximately US$2.5 billion.

In the EUMEA region, there were 8 deals with a total deal value of approximately US$0.2 million. The deal volume was higher than 4Q 2016 while total deal value decreased.
There were 12 deals with a total deal value of approximately US$1.5 billion in the Asia/Paci c region. The Asia/Pacific region has seen a decrease in deal volume but an increase in total deal value in relation to 4Q 2016.


The top ve largest announced deals in 1Q 2017 (based on deal value) accounted for approximately US$3.8 billion, represent- ing approximately 91 per cent of total deal value. Those deals included two transactions in the Americas region, two transactions in the Asia/Pacific region, and one in the EUMEA region. The top ve deals in 1Q 2017 primarily involved strategic buyers, which is consistent with the mix of buyers observed in 4Q 2016. shortages were as widespread as they are now was in October of 2004, at a time when the annual rate of housing starts was hovering around 2 million (compared to the current rate of about 1.1 million).


In the upcoming quarters, PwC expects the major trends impacting the sector to continue to influence deal making. These trends include:

  • Global trade agreements and the ability to access growing markets
  • Continued consolidation amongst strategic players •
  • The strength of the US economy
  • Security of wood fibre supply
  • Potential impacts on supply from sustainable forest management practices

Altogether, economic conditions and industry trends are driving opportunities for FPP companies to create shareholder value. PwC expects deal making to continue to be strong in the sector as companies look to gain strength in core markets.