KPS Capital Partners, LP (“KPS”) has signed a definitive agreement to acquire MM Packaging (the “Business”) from Mayr-Melnhof Karton AG (“MM Group”) for an enterprise value of €2.4 billion.
MM Group will retain 30% ownership of the Business. Completion of the transaction is subject to the required corporate and regulatory approvals as well as other customary conditions and for the French Business, the acquisition is subject to consultation processes with workers representatives. Upon closing, MM Packaging will operate as a standalone company and retain the MM Packaging name.
MM Packaging is a global manufacturer of consumer packaging products, including folding cartons, labels and leaflets, for the food and beverage, pharmaceutical and healthcare, beauty and personal care and household care sectors. Headquartered in Vienna, Austria, the Business operates more than 50 production sites across 19 countries and has approximately 8,500 employees. It is the world’s largest producer of secondary pharmaceutical packaging and a leading producer of folding cartons for food in Europe. MM Packaging has long-standing relationships with many of the world’s top food, consumer and pharmaceutical companies, with key customer relationships averaging more than 20 years.
Michael Psaros, Co-Founder and Co-Managing Partner of KPS, said: “MM Packaging is an industry-leading business, and we are excited to take it to the next level as an independent company. We appreciate the trust MM Group is placing in KPS and look forward to our partnership. KPS has had extraordinary success investing in the packaging sector across paper, board and metal substrates. We will leverage our deep industry experience, financial resources, commitment to manufacturing excellence and global presence to drive MM Packaging’s growth.”
Peter Oswald, CEO of MM Group, said: “This transaction will allow MM Packaging to accelerate growth under the leadership of KPS, who has proven their expertise in managing large, global manufacturing and industrial businesses. Our retained shareholding of 30% will enable MM Group to participate in its future value creation under KPS ownership. We are looking forward to our partnership with KPS.”
Paul, Weiss, Rifkind, Wharton and Garrison LLP and Schönherr served as legal counsel and Barclays Bank Ireland plc and Citi served as financial advisors to KPS.