MM Group Sells Major Stake in Packaging Division for EUR 2.4 Billion

Mayr-Melnhof Karton AG (MM Group) has announced the sale of a majority stake in its Packaging business to KPS Capital Partners, valuing the division at an enterprise value of EUR 2.4 billion. Under the agreement, KPS will own 70% of the new holding company, while MM Group retains a 30% stake. The deal focuses on MM Group's Food & Premium Packaging and Pharma & Healthcare Packaging operations, excluding Iran and Tunisia.

The transaction is projected to generate net cash proceeds of EUR 1.8 to 1.9 billion post-completion, after a EUR 0.4 billion investment for the 30% equity interest. MM Group anticipates a net cash position of EUR 0.8 to 0.9 billion post-transaction. A special shareholder distribution of EUR 0.5 to 0.6 billion is planned, contingent on final approvals and market conditions.

Completion is expected in the first half of 2027 following regulatory and corporate approvals. MM Group's Supervisory Board has approved the transaction, which is subject to customary conditions and worker consultations for the French operations.