M&A in North America | 69to invest.“The ethos of the label ‘Right now, private equity is looking at the label industry and seeing that it’s a safe place to invest money,’ says Cronin, ‘because printing industry is of the growth, upside momentum, technology advances and other items that are going to make it important in the future and make changing rapidly. The them comfortable about where their money is going.’Growth, over the past few years, is not a word one has heard largest multinational in most other industries. But as the Covid-19 pandemic proved, the label industry is resilient and has shown itself to be not only a converting groups are only necessary business, but wholly essential to the global supply chain. This has made the decision much easier for private equity frms to geting bigger, acquisition invest in the label space.‘The printed packaging industry has long been of interest by acquisition”to private equity groups given the industry’s steady growth and, in the case of the label industry, consistently performing above GDP gains,’ says Jennifer Dochstader of LPC, a marketing seen a lot of new entrants into the space. We’re all chasing a lot communications and industry research company. ‘However, we’ve of the same, good companies that are out there,’ says Wynne. ‘So, witnessed increased interest in the past two years given growth that has led to valuations going up which is why you’re seeing a lot rates for printed packaging companies due to factors associated of activity recently. We bring a differentiated approach to sellers with the pandemic. Our industry has decidedly proven itself not focused on employee and customer growth opportunities.’only ‘essential’, but one that also happens to witness higher growth As Wynne mentioned, the last few years have seen more rates during lasting global pandemics.’ companies take an interest in the label industry. Though there have With the proven resilience and growing interest of the label been many private equity frms with long-standing interest and industry from outside investors, many private equity frms and ongoing investments in the sector, and mergers and acquisitions converters are vying for the limited amount of label manufacturers between converters are not at all uncommon, it’s hard to disagree within the 50-to-100 million USD in sales-per-year range, leading that the last few years have been decidedly different.to different strategies when making deals and acquiring said manufacturers. Recent M&A activity‘There are a couple of us that have been acquisitive over the past Over the last 24 months, barely two weeks go by without another couple of years but over the past 18 months or so, we’ve certainly acquisition taking place. Because of this, it can be confusing at Jan - Mar 2022