New York-based private equity firm KPS Capital Partners has agreed to acquire MM Packaging from Mayr-Melnhof Karton ( MM Group ) for an enterprise value of €2.4 billion ( US$2.69 billion ). The parent will retain 30% ownership of the business.
Completion of the transaction is subject to corporate and regulatory approvals as well as other customary conditions. As for the French business, the acquisition is subject to consultation processes with worker representatives.
Upon closing, MM Packaging will operate as a standalone company and retain its corporate name.
Headquartered in Vienna, Austria, 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.
The company runs more than 50 production sites across 19 countries with about 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.
“MM Packaging is an industry-leading business, and we are excited to take it to the next level as an independent company,” says KPS co-founder and co-managing partner Michael Psaros. “We will leverage our deep industry experience, financial resources, commitment to manufacturing excellence and global presence to drive MM Packaging's growth."
According to MM Group chief executive officer Peter Oswald, its retained shareholding of 30% in the company will enable the group “to participate in its future value creation under KPS ownership”.
Paul, Weiss, Rifkind, Wharton and Garrison LLP and Schönherr served as legal counsel and Barclays Bank Ireland and Citi served as financial advisers to KPS.
