Could We See A Consolidation Wave In the Packaging & Containers Sector?
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Investors may want to start sniffing around the Packaging & Containers sector after Wednesday's announcement that Graham Packaging (NYSE: GRM) was acquired by Silgan Holdings Inc. (Nasdaq: SLGN) at a hefty premium.
Graham sells custom blow molded plastic containers for consumer products companies in the United States and internationally. Customers of the company include Clorox, Coca-Cola, Danon, H.J. Heinz, Ocean Spray, Gatorade, and Tropicana, among other nationally recognized names.
Most of Graham's direct competitors are foreign companies. Those include:
In the Company's North American segment, its primary competitors are Alpla Werke Alwin Lehner GmbH ("Alpla"), Amcor Limited (Amcor), Consolidated Container Company LLC, Constar International Inc and Silgan Holdings Inc. In the Company’s European segment, its primary competitors are Alpla and Logoplaste Mealhada Lda. ("Logoplaste"). In the Company’s South American segment, its primary competitors are Alpla, Amcor, Plastipak Packaging Inc. and Logoplaste. In the Company’s Asian segment, its primary competitors are Alpla, Rexam Plastic Packaging Asia, Rex Packaging, Wino-Asia Packaging Company and Southern Packaging Company.
While there may not be any great plays for U.S.-only investors, traders might want to broaden out to the entire sector.
Some interesting names in the sector are:
Crown Holdings Inc. (NYSE: CCK) Market Cap = $6B; Forward P/E = 14x
Ball Corporation (NYSE: BLL) Market Cap = $6B; Forward P/E = 13x
MeadWestvaco Corporation (NYSE: MWV) Market Cap = $5B; Forward P/E = 17x
Owens-Illinois, Inc. (NYSE: OI): Market Cap = $4.8B; Forward P/E = 10x
Smurfit-Stone (Nasdaq: SSCC) Market Cap = $3.6B; Forward P/E = 15x
Bemis Company, Inc. (NYSE: BMS) Market Cap = $3.4B; Forward P/E = 13x
Greif, Inc. (NYSE: GEF) Market Cap = $3B; Forward P/E = 13.5x
Packaging Corp. of America (NYSE: PKG) Market Cap = $2.8B; Forward P/E = 13x
Rock-Tenn Co. (NYSE: RKT) = $2.7B; Forward P/E = 11.5x
Temple-Inland Inc. (NYSE: TIN) Market Cap = $2.4B; Forward P/E = 15x
Graphic Packaging (NYSE: GPK) Market Cap = $1.8B; Forward P/E = 15x
Graham sells custom blow molded plastic containers for consumer products companies in the United States and internationally. Customers of the company include Clorox, Coca-Cola, Danon, H.J. Heinz, Ocean Spray, Gatorade, and Tropicana, among other nationally recognized names.
Most of Graham's direct competitors are foreign companies. Those include:
In the Company's North American segment, its primary competitors are Alpla Werke Alwin Lehner GmbH ("Alpla"), Amcor Limited (Amcor), Consolidated Container Company LLC, Constar International Inc and Silgan Holdings Inc. In the Company’s European segment, its primary competitors are Alpla and Logoplaste Mealhada Lda. ("Logoplaste"). In the Company’s South American segment, its primary competitors are Alpla, Amcor, Plastipak Packaging Inc. and Logoplaste. In the Company’s Asian segment, its primary competitors are Alpla, Rexam Plastic Packaging Asia, Rex Packaging, Wino-Asia Packaging Company and Southern Packaging Company.
While there may not be any great plays for U.S.-only investors, traders might want to broaden out to the entire sector.
Some interesting names in the sector are:
Crown Holdings Inc. (NYSE: CCK) Market Cap = $6B; Forward P/E = 14x
Ball Corporation (NYSE: BLL) Market Cap = $6B; Forward P/E = 13x
MeadWestvaco Corporation (NYSE: MWV) Market Cap = $5B; Forward P/E = 17x
Owens-Illinois, Inc. (NYSE: OI): Market Cap = $4.8B; Forward P/E = 10x
Smurfit-Stone (Nasdaq: SSCC) Market Cap = $3.6B; Forward P/E = 15x
Bemis Company, Inc. (NYSE: BMS) Market Cap = $3.4B; Forward P/E = 13x
Greif, Inc. (NYSE: GEF) Market Cap = $3B; Forward P/E = 13.5x
Packaging Corp. of America (NYSE: PKG) Market Cap = $2.8B; Forward P/E = 13x
Rock-Tenn Co. (NYSE: RKT) = $2.7B; Forward P/E = 11.5x
Temple-Inland Inc. (NYSE: TIN) Market Cap = $2.4B; Forward P/E = 15x
Graphic Packaging (NYSE: GPK) Market Cap = $1.8B; Forward P/E = 15x
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