Mayr-Melnhof Karton AG (MM Group) expects €1.8 billion to €1.9 billion in cash proceeds from selling control of its packaging business and net cash of €0.8 billion to €0.9 billion after closing.
KPS Capital Partners will own 70% of a newly formed holding company for the business, with MM Group retaining 30%. The €2.4 billion enterprise valuation equates to roughly nine times the packaging division’s estimated 2026 adjusted EBITDA, MM Group said. The transaction continues EconoTimes’ earlier coverage of the sale agreement.
The proceeds estimate accounts for an expected €0.4 billion investment in MM Group’s retained stake. The final amount will depend on taxes, purchase-price adjustments and closing timing. MM Group plans to use proceeds to repay debt and pursue strategic opportunities. It is also planning a special distribution of €500 million to €600 million to shareholders, subject to approvals and other conditions.
MM Group said separating Packaging from Board & Paper would allow the businesses to set their own strategies and capital-allocation priorities. Board & Paper is expected to keep supplying cartonboard to MM Packaging under a long-term agreement. In the first three quarters of 2026, MM Group’s two packaging divisions exceeded prior-year adjusted EBITDA on a like-for-like basis excluding TANN, while Board & Paper earnings were lower. The company cited competition, pricing pressure, higher energy, transport and chemical costs, and scheduled mill maintenance as pressures on Board & Paper.
The packaging business includes Food & Premium Packaging operations except in Iran and Tunisia, along with Pharma & Healthcare Packaging. MM Group’s stake could fall to 20% if certain 2027 adjusted EBITDA targets are missed; the company has not disclosed the thresholds, and no additional payment would be due. MM Group expects the transaction to close in the first half of 2027, after required approvals, other closing steps and consultation with French worker representatives.
