Mayr-Melnhof Karton (MM Group) has entered into a binding transaction agreement to offload its packaging division to a newly formed entity managed by KPS Capital Partners, in a deal pegging the business at an enterprise value of €2.4bn.
Under the agreed framework, KPS will take a 70% majority stake in the holding entity, whilst MM Group will hold the remaining 30% to retain exposure to future value creation.
The perimeter of the sale encompasses the food & premium packaging division, excluding facilities situated in Iran and Tunisia as well as the pharma & healthcare packaging arm.
Employing roughly 8,500 personnel across more than 50 manufacturing sites in 19 nations, the Vienna-headquartered business manufactures consumer packaging products.
This includes folding cartons, labels and leaflets, for the food and beverage, pharmaceutical and healthcare, beauty and personal care and household care sectors.
KPS co-founder and co-managing partner Michael Psaros said: "We will leverage our deep industry experience, financial resources, commitment to manufacturing excellence and global presence to drive MM Packaging's growth."
The separation decouples the packaging branch from MM Group's board & paper unit.
Following completion, MM Group will concentrate its primary activities on the board & paper division while maintaining a minority position alongside KPS.
The proceeds are projected to leave MM Group with net cash of roughly €800m to €900m.
Capital will be allocated to debt repayment, strategic initiatives, and shareholder returns, including an intended special distribution of €500m to €600m.
The division will retain the MM Packaging trade name and will eventually be accounted for using the equity method.
Completion is expected in the first half of 2027, pending standard corporate approvals, regulatory clearances, and works council consultations covering the French business.
MM Group CEO Peter Oswald said: "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 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."
"MM Group to sell majority stake in packaging division to KPS in €2.4bn deal" was originally created and published by Packaging Gateway , a GlobalData owned brand.
