- Private equity is accelerating consolidation in plastics and packaging, prioritizing resilient, cash-generative end-markets.
- CD&R’s $10.3B enterprise-value take-private of Sealed Air highlights the split between stronger Food Care and pressured Protective Care demand.
- Valuations rose in 2025, with median PE EV/EBITDA near ~10x in Q3 as competition from strategics increased.
- Deal volume rebounded in the second half of 2025, but tariffs, rates, and uneven end-market demand remain key risks.
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Recent plastics and packaging M&A activity underscores a clear pivot by PE firms toward consolidating brands with steady revenue streams and strong margin profiles. The Sealed Air deal with Clayton, Dubilier & Rice (CD&R) is a case in point: Sealed Air’s Food Care business, comprising about two-thirds of its revenue, offers more predictable cash flows; its Protective Care business has seen prolonged pressure, with 15 straight quarters of volume decline. PE acquirers in 2025 appear keen to target such resilient end-markets.
Valuation metrics reflect this focus. In Q3 2025, median EV/EBITDA multiples in PE plastics deals rose to approximately 10.4×, up from much lower levels in 2024; strategic buyers’ multiples also climbed, highlighting competitive pressure from both PE and strategists. Less disclosure around earlier deal terms implies high variation across subsectors, but packaging, specialty resins, and materials commands appear particularly strong.
Volume trends are improving: package deals such as Sealed Air’s takeprivate, substantial materials deals like Arclin’s acquisition of DuPont’s aramid business, and growth in modular or bolt-on acquisitions among mid-market processors point to revitalizing transaction flow after earlier sluggishness. However, macro risks—tariffs, inflation, interest rates—still weigh and could strain execution, especially for capital-intensive operations.
Strategically, companies and PE buyers must choose between vertical integration (e.g. acquiring upstream resin or additive producers) and downstream expansion (enabling full turnkey solutions like moulding-+-painting). Sellers (often aging family owners) need careful deal structures including earnouts given fluctuating performance and valuation uncertainty. Cross-border considerations (trade policy, supply chains) are increasingly relevant, especially for packaging and protective plastics whose raw materials and end-markets span continents.
Open questions include: will PE multiples hold or revert if rate environments worsen; can Buyers find operational efficiencies or technology synergies (e.g. automation, sustainable materials) to justify premium prices; and will deal volume skew further toward commoditized or defensive subsectors (food packaging, medical) versus more volatile protective or aesthetic segments. Careful diligence, conservative modeling, and flexible deal terms will be critical in 2026.
Supporting Notes
- Sealed Air agreed to be acquired by CD&R for $6.2B in cash, with an enterprise value of $10.3B and a per-share price of $42.15; deal expected to close mid-2026 pending approvals.
- Sealed Air generated $5.4B in revenue in 2024 with ~16,400 employees; Q3 2025 net sales of $3.96B (-1.5% YoY), with the Food segment comprising ~67% of sales.
- Financial buyer multiples increased significantly: in Q3 2025, the median EV/EBITDA for PE deals in plastics rose to ~10.4×, up from lower levels in 2024; strategic deal multiples also rose.
- M&A deal volume rose in plastics in Q3 2025: 131 deals (up ~9.2% from Q2, and ~36.5% from Q3 2024).
- Specific large materials deals include Arclin’s purchase of DuPont’s aramids business (Kevlar/Nomex brands), and the acquisition by Niche Polymer of four LyondellBasell powder plants, consolidating into Specialty Powders LLC.
- Protective packaging volumes declined YoY for Sealed Air (Protective segment down,^ volumes in Protective Care are under pressure) even as Food Packaging improved.