Mayr-Melnhof Karton AG (MM Group) agreed Nov. 9 to sell control of its packaging business to KPS Capital Partners, LP, in a transaction with a €2.4 billion enterprise value, while keeping a minority stake.
KPS will own 70% of a newly formed holding company acquiring the business, with MM Group retaining 30% after closing. The valuation represents about nine times estimated 2026 adjusted EBITDA, MM Group said. The sale includes its Food & Premium Packaging operations, except in Iran and Tunisia, and its Pharma & Healthcare Packaging operations.
MM Group expects cash proceeds of €1.8 billion to €1.9 billion after investing an estimated €0.4 billion for its retained interest. The final amount will depend on taxes, purchase-price adjustments and the timing of closing. The company plans to use proceeds for debt repayment and strategic opportunities, and is planning a €0.5 billion to €0.6 billion special distribution to shareholders after closing. That distribution remains subject to approvals, legal and regulatory considerations, and business conditions at the time.
The transaction would separate Packaging from MM Group’s Board & Paper business. MM Group said each operation could then set its own strategy and capital allocation, while a long-term cartonboard supply agreement is planned to link the businesses after closing. The company also sees scope for its packaging unit to pursue organic growth and selective acquisitions with KPS’s support.
KPS says the business is expected to operate independently as MM Packaging. It employs about 8,500 people and runs more than 50 production locations across 19 countries, making folding cartons, labels and leaflets, according to KPS.
Under the agreement, MM Group’s holding could be reduced to a minimum of 20% if certain 2027 EBITDA targets are missed. In that case, no additional consideration would be paid by or to MM Group, the company said.
MM Group’s Supervisory Board has approved the deal. The company expects closing in the first half of 2027, subject to corporate and regulatory approvals, customary conditions and consultation with worker representatives at the French business.
