Navigating M&A Opportunities in the Plastic Recycling Industry

The Plastic Recycling industry is undergoing significant transformation. Economic slowdowns, rising raw material costs, and delays in implementing regulatory frameworks temporarily impacted the sector in recent years. However, 2024 has ushered in a marked recovery in M&A activity. Key drivers include stringent ESG requirements, increasing demand for circular packaging solutions, and ambitious sustainability initiatives like the European Green Deal.

The M&A market is particularly dynamic for machinery, plant, and component manufacturers, who are pivotal in advancing recycling technologies. As innovation accelerates and market demand grows, manufacturers are positioned at the forefront of this evolving landscape.

Discover actionable strategies and stay ahead in this competitive industry and read the IMAP Germany Plastic Recycling Report which delivers an in-depth analysis of the M&A landscape, spotlighting valuation benchmarks, technological innovations, and ESG-driven investment trends. The report emphasizes how machinery manufacturers are meeting industry demands by leveraging cutting-edge solutions and proprietary technologies to drive operational efficiencies and respond to the growing market for sustainable plastic recycling. These strategic efforts, combined with rising global demand for circular solutions, are creating significant opportunities for M&A activity.

Key Report Highlights:

• The share of recycled plastic waste is expected to increase to 20% by 2030 (+7.2% CAGR 2020–30) and to 45% by 2050 (+5.1% CAGR 2020–50)
• Crucial to this growth are technologies for plastic recycling and extrusion, which are developed by specialized machinery and components manufacturers
• These players are critical in meeting the long-term and rising demand for sustainable plastic solutions
• Global investors and strategic buyers are targeting ESG-focused companies to drive innovation and competitiveness in sustainable solutions
• Machinery and component manufacturers with strong technological differentiation and market position are in demand
• IMAP Germany currently observes multiples between ~7x to ~9x EBITDA for machinery and component manufacturers in the plastic recycling and extrusion sector, if proprietary technologies and strong market positions exist