CHICAGO, Dec. 3 /PRNewswire-FirstCall/ -- U.S. Bancorp Piper Jaffray
(Piper Jaffray) today released a new report in its series on valuations in the
packaging industry. The report, entitled Packaging Industry Valuation
Considerations - Capital Expenditures, examines the level of capital
expenditures in the packaging industry. According to Doug Lawson, vice
president in Piper Jaffray's Middle Market Mergers and Acquisitions (M&A)
group, the report reviews capital expenditures, versus sales, earnings-before-
interest-taxes-depreciation and amortization (EBITDA) and depreciation for a
group of rigid, flexible and paper and board packaging companies since 1998.
The report compares the level of capital expenditures for rigid, flexible
and paper and board packaging companies. Capital expenditures for the group of
packaging companies reviewed were approximately five percent of sales and 35
percent of EBITDA. Capital expenditures were the highest for rigid packaging
companies, representing over six percent of sales and approximately 40 percent
of EBITDA. The flexible packaging companies had capital expenditures of
approximately five percent of sales and 30 percent of EBITDA over the period
According to Lawson, the level of capital expenditures was correlated to
economic activity, with capital expenditures averaging over 6.5 percent of
sales in 1998 and 1999. The report also reviews the current valuations of the
rigid, flexible and paper and board packaging companies and compares them with
the level of capital expenditures.
The report is the latest in a series of reports by Piper Jaffray's Middle
Market M&A Group that explores mergers and acquisitions in the packaging
industry. Other recent reports published by Doug Lawson and his team include:
-- 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: Value Drivers for Companies in the Packaging
Industry (February, 2003).
-- Mergers and Acquisitions Activity in the Packaging Industry - 2002 Year
in Review (February 2003).
In addition, Piper Jaffray publishes a monthly packaging mergers and
To subscribe to the newsletter or to receive a copy of Packaging Industry
Valuations Considerations: Capital Expenditures, or any of the aforementioned
reports, clients and members of the media should contact Doug Lawson at
firstname.lastname@example.org or 312-920-2139 or Dana Wade at email@example.com or 415-277-1556.
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SOURCE U.S. Bancorp Piper Jaffray