News Releases

BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group (NYSE, TSX: BMO), has released its latest report entitled Mergers & Acquisitions in the Packaging Industry: Annual Deal Review.

The report provides the most comprehensive review of M&A activity in the global packaging industry in 2007. The report examines M&A activity by packaging sector, by strategic and financial acquirers, by geography, and by transaction valuations.

“The packaging M&A market had a record year in 2007 despite the market challenges in the latter part of the year,” said Doug Lawson, Managing Director and head of BMO Capital Markets' packaging practice.

“For much of 2007, there existed very favorable conditions for M&A, including a strong economy and favorable credit markets. These factors combined with healthy balance sheets, significant availability of private equity capital and a strong rationale for continued consolidation drove the record M&A levels in the packaging sector,” he added.

Mr. Lawson noted, “Deal flow slowed in the latter part of 2007 and is down in the first two months of 2008 versus the prior year, however, there continues to be interest in the sector and a strong rationale for continued consolidation remains.”

Highlights of the report include:

• M&A volume increased for the fifth consecutive year
  The number of transactions in the packaging industry continued to increase to 386 deals, representing a 10 per cent increase year-over-year from 351 deals in 2006. The number of deals had not been as high since 2000, when there where 385 transactions.
• Aggregate packaging value reached $32.6 billion for the 137 transactions with reported values
• The median reported packaging transaction value was $35.3 million in 2007
  This represents a significant increase over the median value in 2006 of $21 million. In addition, nine of the 10 largest reported deals exceeded $1 billion in Enterprise Value versus only two of the 10 largest reported deals in 2006.
• Acquirers of all types were active
  Strategic and private equity acquirers (including their portfolio companies) were all active in the packaging industry in 2007, accounting for 66 per cent and 34 per cent of transactions, respectively. Overall, public companies account for the greatest proportion (34 per cent) of packaging acquisitions.
• M&A activity was strong across all regions of the world
  In 2007, strategic acquirers increasingly looked outside of the U.S. and Europe for acquisitions as only 64 per cent of target companies were located in North America or Europe in 2007, versus 74 per cent in 2006.
• Transaction volume was strong across the rigid, flexible and paperboard sectors
  In 2007, the number of deals in the packaging industry was relatively evenly dispersed between the rigid packaging sector (27 per cent), flexible packaging (26 per cent), and paperboard packaging (22 per cent). The remainder of activity was split between the label, machinery, and other packaging sectors.

About the BMO Capital Markets Packaging Group
The BMO Capital Markets Packaging Group has substantial transaction experience across the broad spectrum of the packaging industry. With six dedicated investment banking professionals, the group has led numerous M&A and financing transactions of packaging companies. The team has significant experience in representing public, private and private-equity owned companies across a variety of packaging sub-sectors that include Flexible, Rigid, Paperboard, Labels, Contract Packaging and Machinery.

Journalists:

To request a copy of the Mergers & Acquisitions in the Packaging Industry: Annual Deal Review or to subscribe to The Converter, a monthly BMO newsletter which reports on the activities and trends shaping this industry, please visit www.bmocm.com/industry/packaging/  or send an email to Doug Lawson at doug.lawson@bmo.com.

About BMO Capital Markets
BMO Capital Markets is a leading full-service North American financial services provider, with over 2,000 employees operating in 14 North American offices and 26 worldwide, offering corporate, institutional and government clients access to a complete range of investment and corporate banking products and services. BMO Capital Markets is a member of BMO Financial Group (NYSE, TSX: BMO), one of the largest diversified financial services providers in North America with more than CAD$377 billion and more than 36,000 employees as at January 31, 2008.

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For more information, visit www.bmocm.com.