New Piper Jaffray Report Reviews Merger and Acquisition Activity in the Corrugated Container Sector of the Packaging Industry

New Piper Jaffray Report Reviews Merger and Acquisition Activity
in the Corrugated Container Sector of the Packaging Industry 


CHICAGO, Aug. 16  /PRNewswire-FirstCall/ -- Piper Jaffray today released
Corrugated Containers: A Mergers and Acquisitions Review, written by Doug
Lawson, vice president and investment banker in the Middle Market Mergers and
Acquisitions (M&A) Group at Piper Jaffray.  In the report, Lawson provides an
overview of the corrugated container market, including industry
characteristics, end markets and major participants. In addition, he reviews
M&A value drivers, transaction activity and valuation metrics.

The corrugated container market is one of the largest sectors of the packaging
industry.  Corrugated containers are typically used to protect, ship, store,
market and display products.  The market has grown at a compound annual growth
rate of 2.7 percent since 1992 (based on the value of corrugated shipments),
although the market has contracted in each of the past three years.  Domestic
growth for the corrugated container market is projected at approximately three
percent annually through 2007.  Factors affecting the level of growth include:
(i) the state of the economy, (ii) offshore competition and (iii) competing
products.  Historically, corrugated container demand has moved with changes in
gross domestic product (GDP); however, more recently corrugated container
demand has been more closely associated with non-durable goods production.

According to Lawson, the corrugated container market has experienced
significant consolidation in recent years.  He believes the consolidation of
the market will continue, with the large integrated companies remaining the
most active acquirers.

"Acquisitions will continue to be driven by opportunities to expand
geographical presence, fill mill capacity and add capabilities and customers,"
said Lawson. "We do not expect to see significant private equity involvement in
the sector. We anticipate that the majority of corrugated container companies
will be sold in the five to seven times EBITDA range; however, companies with
certain characteristics will attract higher valuations."

Corrugated Containers: A Mergers and Acquisitions Review is the latest in a
series of reports by the Piper Jaffray Middle Market M&A Group that explore M&A
in the packaging industry. Other reports published by Doug Lawson and his team
include:

   -- Mergers and Acquisition Activity in the Packaging Industry -- 2003
      Year in Review and 2004 Outlook (March 2004)
   -- 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).

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


To subscribe to the newsletter or to request a copy of Corrugated Containers: A
Mergers and Acquisitions Review, or any of the aforementioned reports, please
contact Doug Lawson at  or 312-920-2139.

Piper Jaffray & Co. is the chief operating subsidiary of Piper Jaffray
Companies (NYSE:PJC), a focused securities firm dedicated to delivering
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