New Piper Jaffray Report Reviews Merger and Acquisition Activity in Packaging Industry; Provides Outlook for 2004

New Piper Jaffray Report Reviews Merger and Acquisition Activity in Packaging
Industry; Provides Outlook for 2004
Banker Expects Substantial Consolidation in Packaging Industry Over Next Several
Years 


CHICAGO, March 30  /PRNewswire-FirstCall/ -- Piper Jaffray & Co. today released
Mergers and Acquisitions in the Packaging Industry - 2003 Year in Review and
2004 Outlook, a new report written by Doug Lawson, vice president and investment
banker in the Piper Jaffray Middle Market Mergers and Acquisitions (M&A) Group. 
In the report, Lawson provides an overview of the industry, valuations of
packaging companies, the level of M&A activity, financial performance metrics,
value drivers for target companies and the outlook for M&A activity in 2004.

"We believe M&A activity in the packaging industry presents significant value
creation opportunities and that there will be substantial consolidation over the
next several years," said Lawson.

In addition to improving economic conditions and more favorable conditions in
the financial markets, Lawson believes the following factors will drive M&A
activity in the industry:

   -- High fragmentation within the packaging industry
   -- Benefits from economies of scale
   -- Strong customer leverage
   -- Customer service and innovation driving growth and profitability
   -- Existence of substantial purchasing synergies
   -- Access to lower cost capital
   -- The need for acquirers' to achieve profitable growth.



The report also details the following M&A highlights from the packaging industry
in 2003:

   -- The number of announced packaging M&A transactions increased slightly
      over 2002 to 311.
   -- The total value of deals increased slightly from 2002, to
      $14.3 billion.
   -- Paper and board and plastic packaging companies accounted for the
      majority of announced transactions.
   -- Strategic acquirers continued to account for the majority of the M&A
      activity.
   -- Valuations for M&A transactions, which typically fall in the range of
      5.0 times to 7.0 times Enterprise Value / earnings before interest,
      taxes, depreciation and amortization (EV/EBITDA), increased slightly
      in 2003 above 2002 levels.



The report is the latest in a series of reports by the PiperJaffray Middle
Market M&A group that explore M&A in the packaging industry. Other recent
reports published by Doug Lawson include:

   -- Mergers & Acquisitions Value Drivers for Companies in the Packaging
      Industry (February, 2004)
   -- Packaging Industry Valuation Considerations: Capital Expenditures
      (December, 2003)
   -- Caps and Closures: A Mergers and Acquisitions Review (August, 2003)
   -- Valuations in the Packaging Industry (May, 2003).
   -- Packaging Industry Public Acquirers - Earnings per Share
      Accretion/Dilution Considerations (March, 2003).
   -- Mergers and Acquisitions Activity in the Packaging Industry - 2002
      Year in Review (February, 2003).

  In addition, Piper Jaffray publishes a monthly packaging M&A newsletter.


To subscribe to the newsletter or to request a copy of Mergers and Acquisitions
in the Packaging Industry - 2003 Year in Review and 2004 Outlook, or any of the
aforementioned reports, please contact Doug Lawson at  or 312-920-2139.

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