Key Takeaways
- • KPS Capital Partners agreed to acquire a 70% equity stake in MM Packaging, the packaging division of Austria's Mayr-Melnhof Group (MM Group), based on a valuation of 2.4 billion euros including debt.
- • MM Packaging generated 2025 revenue of 2.4 billion euros and adjusted EBITDA of 260 million euros, with 72% of sales in Europe, 18% in the Americas and 10% in the rest of the world.
- • MM Group will retain 30% of MM Packaging and expects 1.8 to 1.9 billion euros in cash proceeds, used to reduce debt and fund investments, with a special dividend of 500 to 600 million euros under consideration.
- • The transaction covers 52 production sites in 19 countries and about 8,500 employees, including seven French plants that trigger employee consultations.
- • Closing is expected in the first half of 2027, subject to regulatory approvals and labor consultations.
Summary
U.S. private equity firm KPS Capital Partners is set to take control of MM Packaging, the packaging division of Austria's Mayr-Melnhof Group (MM Group). The parties have signed an agreement for KPS to acquire 70% of the equity, based on a valuation of 2.4 billion euros including debt. MM Group will keep the remaining 30%. KPS manages approximately $19.1 billion in assets, and according to the report, the acquisition strengthens its investments in packaging processing and manufacturing.
Vienna-based MM Packaging operates 52 production facilities in 19 countries and employs approximately 8,500 people. The business manufactures folding cartons, labels and package inserts, primarily for food, pharmaceutical, cosmetics and household products. In 2025 it generated revenue of 2.4 billion euros and adjusted EBITDA of 260 million euros. Europe accounts for 72% of sales, the Americas 18% and the rest of the world 10%. The sale covers the Food & Premium Packaging divisions, excluding operations in Iran and Tunisia, and the Pharma & Healthcare Packaging division.
The transaction affects seven MM Packaging sites in France, including facilities in Monéteau, Chazelles, L'Isle-d'Espagnac, Soyaux, Valréas, Ancenis-Saint-Géréon and Saint-Hilaire-du-Harcouët. Consultations with employee representatives are planned.
The sale separates MM Group's two industrial divisions. Following the transaction, MM Group will focus on flatboard and paper production through its Board & Paper division, which generated revenue of 1.93 billion euros in 2025 and operates six paper and board plants and a mechanical pulp facility. MM Packaging will continue under its current name as an independent entity. The companies will maintain commercial ties under a long-term supply contract under which MM Group supplies flat cardboard to MM Packaging's plants.
MM Group expects to generate between 1.8 and 1.9 billion euros in cash from the transaction. The proceeds will be used to reduce debt and finance future investments, and the group is also considering a special dividend of 500 to 600 million euros for shareholders. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and labor consultations.
Vienna-based MM Packaging operates 52 production facilities in 19 countries and employs approximately 8,500 people. The business manufactures folding cartons, labels and package inserts, primarily for food, pharmaceutical, cosmetics and household products. In 2025 it generated revenue of 2.4 billion euros and adjusted EBITDA of 260 million euros. Europe accounts for 72% of sales, the Americas 18% and the rest of the world 10%. The sale covers the Food & Premium Packaging divisions, excluding operations in Iran and Tunisia, and the Pharma & Healthcare Packaging division.
The transaction affects seven MM Packaging sites in France, including facilities in Monéteau, Chazelles, L'Isle-d'Espagnac, Soyaux, Valréas, Ancenis-Saint-Géréon and Saint-Hilaire-du-Harcouët. Consultations with employee representatives are planned.
The sale separates MM Group's two industrial divisions. Following the transaction, MM Group will focus on flatboard and paper production through its Board & Paper division, which generated revenue of 1.93 billion euros in 2025 and operates six paper and board plants and a mechanical pulp facility. MM Packaging will continue under its current name as an independent entity. The companies will maintain commercial ties under a long-term supply contract under which MM Group supplies flat cardboard to MM Packaging's plants.
MM Group expects to generate between 1.8 and 1.9 billion euros in cash from the transaction. The proceeds will be used to reduce debt and finance future investments, and the group is also considering a special dividend of 500 to 600 million euros for shareholders. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and labor consultations.
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