Mayr-Melnhof Packaging to Acquire Austria's TANN Group for EUR 275 Million
Family-owned TANN Group develops and distributes tipping paper (paper that is used to wrap around a cigarette filter), which it produces by converting externally sourced fine paper.
Nov. 13, 2018 - Mayr-Melnhof Packaging on Oct. 18 announced an agreement with the owners of TANN Group on the 100% acquisition of the Group, which has headquarters in Traun, Austria.
The equity purchase price is approximately EUR 275 million.
Family-owned TANN Group develops and distributes tipping paper (cigarette filter paper), which it produces by converting externally sourced fine paper. The company has eight production sites in seven countries with customers in 90 countries around the world.
According to Mayr-Melnhof, TANN Group, with 1,100 employees, has annual sales of about EUR 230 million.
In a press release, Mayr-Melnhof said, “Through this acquisition MM Packaging extends its present position in cigarette packaging by the technologically closely related production of tipping paper. The aim is to further strengthen the profitability of MM Packaging along with the expansion of the value chain. Moreover, the development of the sites shall create new potential.”
Mayr-Melnhof Packaging expects to close the deal around the end of 2018 or beginning of 2019, pending the approval of the antitrust authorities.
Mayr-Melnhof Packaging, a division of Mayr-Melnhof Group, is a leading producer of folding cartons in Europe and the world with a production volume of over 63 billion folding cartons per year. To learn more, please visit: www.mayr-melnhof.com.
SOURCE: Mayr-Melnhof Karton AG