PRESS RELEASE 10 May 2017
How is M&A activity shaping European tissue industry?
Pöyry’s new Point of View article examines the M&A trends in the European tissue market, industry players, their business logic and the anticipated developments in the field of acquisitions.
Since 2000, the European tissue volume has grown from 5.7 million tons to almost 8.5 million tons. A clear trend connected to this growth has been consolidation of the largest players.
“By strengthening their position, these players have also improved their profitability. Consolidation has resulted in significant synergy benefits and positively impacted the overall business environment”, says Pirkko Petäjä, Principal at Pöyry Management Consulting.
As the number of large targets is limited, European tissue acquisitions have been relatively small since 2012. The recent M&A activities have focused on small companies and individual mills to complement portfolios and target stronger position, consolidation and synergy benefits, among other things.
There has also been a continuous stream of new generation of entrants to the tissue business. Financial owners are becoming more common, especially in growth areas such as Iberia and Eastern Europe where the industry is still fairly fragmented. In addition, previously small and local family-owned companies have grown significantly and become the largest ownership group in the European market.
The consolidation is set to continue in Europe with players strategically buying assets that best allow them to serve their customers. This still leaves room for questions such as: Are there possible major acquisition opportunities that would attract very large companies in Europe, who will be consolidating in Eastern Europe and could new Asian or Middle Eastern players enter the market?
Principal, Pöyry Management Consulting
+358 10 332 2329
Senior Consultant, Pöyry Management Consulting
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