Packaging M&A: A Constructive First Half and What It Means for the Sector

Packaging M&A 2026 has proved more constructive than many expected, with approximately 100 European transactions in H1 — an 11% increase year-on-year. While macroeconomic and geopolitical headwinds persist — sluggish European growth, global trade disruptions, persistent uncertainty — sentiment has gradually improved, and deal-making has responded. The sector is signalling a clear recovery from the sharp decline seen in 2023.

At MP Corporate Finance, we track M&A activity across the full European packaging value chain — from flexible packaging and labels to rigid, fibre-based, and trader segments. What we observed in the first six months of 2026 was not just a return of volume, but a shift in the character of deal-making: more strategic, more deliberate, and increasingly shaped by portfolio logic rather than opportunistic bolt-ons.

Strategic acquirers are back — and financial sponsors are keeping pace

The recovering environment has led strategic acquirers to act more decisively. Companies are using M&A to reposition portfolios, exit non-core segments, and double down on areas of competitive strength. Carve-out transactions such as Stora Enso – Prinzhorn and Coveris (Paper) – Kingswood Capital are prime examples of this portfolio reshaping in action. These are not distressed exits — they are deliberate moves by large groups to sharpen their focus.

Financial buyers have likewise continued to pursue acquisitions at a pace comparable to H1 2025. New platform investments such as Apollo – Lecta and Imker – Faller Packaging are expected to act as catalysts for further consolidation. In H1 2026, 36% of deals involved PE-backed buyers, compared to 49% by strategic acquirers — a ratio that underscores the growing maturity and conviction of sponsor-led buy-and-build strategies in the sector.

Margins hold firm, leverage comes down

One of the most reassuring signals from H1 2026 is the resilience of operating performance across the packaging sector. EBITDA margins have remained stable or improved across most segments: 14.9% in Rigid, 14.0% in Fibre-based, 12.4% in Flexible & Labels, and 8.0% in Trader. This consistency is driven by solid consumer demand and disciplined cost management, even as capital expenditure has declined from 5.4% to 5.1% of sales among packaging players.

Perhaps more importantly, balance sheets have strengthened. Median leverage decreased from 3.3x to 2.7x net debt/EBITDA, giving companies greater financial flexibility — whether for acquisitions, investment, or navigating continued macro uncertainty. For potential sellers, this combination of healthy margins and reduced leverage makes packaging businesses attractive targets with a compelling financial profile.

Valuations reflect confidence — with clear segment differentiation

The peer group analysis tells a nuanced story. Across 100 European transactions in H1 2026, the median EV/EBITDA multiple stood at 7.8x, with meaningful variation by sub-sector. Rigid packaging commanded the highest multiples at 8.4x EV/EBITDA, followed by Fibre-based and Flexible & Labels at 7.6x each, and Trader at 7.7x.

Listed packaging peers are trading at broadly similar levels — TEV/Sales of 1.17x and TEV/EBITDA of 7.8x — in line with the trajectory observed throughout 2025. Declining forward multiples indicate that the market expects EBITDA growth among peer group participants, while the parallel development of sales and EBITDA multiples reflects stable margin expectations.

The sub-sector breakdown of deal activity is also telling: Flexible & Labels accounted for 34% of transactions, followed by Fibre-based at 28%, Rigid at 28%, and Trader at 10%. Western Europe remained the dominant target region at 42%, with Southern Europe at 24% and Northern Europe at 18%.

Where the deals are happening

A closer look at the selected transactions from H1 2026 reveals the breadth and diversity of packaging M&A activity. Deals ranged from Nordic distribution footprint expansions (Vartto Emballage – Boxon) to US packaging platform build-outs (Bluesky Solutions – Berlin Packaging) and European pharma packaging consolidation (Topapack Netherlands – Alcami Corp).

Several themes stand out across the deal table: geographic expansion remains a primary deal driver, with acquirers seeking to strengthen positions in specific European markets or extend into adjacent regions. Subsector convergence is visible as rigid, flexible, and fibre-based players increasingly compete for the same end-market applications. And PE platform scaling continues at pace, with sponsors adding capabilities and geographic reach through targeted bolt-ons.

Notable transactions include CCL Industries’ global expansion in shrink sleeve labels, Kingswood Capital Management’s carve-out creating a standalone paper packaging platform from Coveris, and the Brazit Fund’s PE carve-out creating an independent European packaging player from Waddington Europe.

Packaging M&A 2026: outlook for owners and buyers

The outlook for the second half of 2026 is constructive. MP expects deal activity to reach approximately 115 transactions in H2, supported by improving market sentiment, resilient equity markets, and a healthy pipeline that has been building throughout the year. If realised, full-year 2026 would see around 215 deals — a meaningful step-up from 206 in 2025 and a signal that the post-2023 recovery is firmly on track.

For owners and operators of packaging businesses, the current environment offers a favourable combination: stable operating performance, improving buyer confidence, and a competitive landscape where both strategic and financial acquirers are actively seeking quality assets. The gap between well-positioned businesses — those with clear market positions, sustainable margins, and growth optionality — and average assets continues to widen. Understanding where your business sits in that landscape, and how to present that story to the right buyers, is more important than ever. Packaging M&A 2026 is delivering on the recovery that began last year.

If you would like to discuss what the current M&A environment means for your business, we would be happy to share our perspective. Please reach out to our packaging team at MP Corporate Finance.