The Packaging business includes MM Group's Food & Premium Packaging operations (excluding the Iran and Tunisia operations) as well as the Pharma & Healthcare Packaging operations.
Nov. 10, 2026 - Mayr-Melnhof Karton AG ("MM Group") has signed a binding transaction agreement to sell its Packaging operations to a newly established company ("new holding company") of KPS Capital Partners, LP. KPS will hold 70% of that holding company and MM Group will hold 30% following completion of the transaction.
The Packaging business includes MM Group's Food & Premium Packaging operations (excluding the Iran and Tunisia operations) as well as the Pharma & Healthcare Packaging operations.
The transaction values the Packaging business at an enterprise value of EUR 2.4 billion, corresponding to an implied 2026E EV / adj. EBITDA multiple of approximately 9x. Net of the estimated investment of approximately EUR 0.4 billion for its 30% equity interest in the new holding company, MM Group expects the transaction to generate cash proceeds of approximately EUR 1.8 to 1.9 billion upon completion of the transaction.
The final cash proceeds will depend on the level of taxes arising from the transaction, standard purchase-price-adjustment mechanisms and the timing of completion, MM Group said.
MM Group's equity interest in the new holding company could be reduced to a minimum of 20% if certain EBITDA targets for the financial year 2027 are not achieved, with no additional consideration payable to or by MM Group as a result.
According to the company, the deal will separate MM Group's Packaging and Board & Paper businesses, enabling each to pursue its strategy and capital allocation priorities with greater focus. The Packaging business already operates largely independently. As a standalone company, the Packaging business is expected to pursue organic growth as well as selective acquisitions, supported by KPS's experience in industrial carve outs and track record of driving operational improvement and sustainable growth.
"Over the last years, we have created substantial growth and shareholder value in MM Packaging," said Peter Oswald, CEO of MM Group. "This transaction will allow the business to continue its growth under the leadership of KPS, a leading private equity investor in manufacturing and industrial companies. Our retained shareholding of 30% will enable MM Group to participate in its future value creation."
Following completion of the transaction, MM Group will focus on its Board & Paper business, and a long-term cartonboard supply agreement will secure the continuous supply of cartonboard from the Board & Paper business to the Packaging business post completion of the deal.
"As the European leader in folding cartonboard, our Board & Paper business will become an independent supplier to the packaging industry. Following the transaction, MM Group will have a strong balance sheet and the financial resources to develop its business organically and through selected acquisitions and partnerships. At the same time, we plan a substantial distribution of capital to our shareholders," Oswald explained.
Operations at both Packaging and Board & Paper will continue as normal following the signing of the transaction. The Packaging business will remain part of MM Group until completion of the transaction and retain the MM Packaging name after completion.
Completion is subject to required corporate and regulatory approvals as well as other customary closing conditions and for the French Business, the acquisition is subject to consultation processes with workers representatives and is expected in the first half of 2027.
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $19.1 billion of assets under management (as of June 30, 2026).
MM Group is a global leader in fibre-based consumer packaging. With a portfolio that includes cartonboard, folding cartons, kraft and fine papers, leaflets, and labels, MM delivers innovation with recyclability at its core.
SOURCE: MM Group