Mayr-Melnhof sells 70% of Packaging unit to KPS at EUR 2.4bn (USD 2.7bn) enterprise value
Mayr-Melnhof has signed a binding agreement to sell its Packaging business to a new holding company that will be 70% owned by KPS Capital Partners and 30% by Mayr-Melnhof. The business covers Food & Premium Packaging (excluding Iran and Tunisia) and Pharma & Healthcare Packaging. The deal values it at an enterprise value of EUR 2.4bn (USD 2.7bn), about 9x 2026E adjusted EBITDA. After investing about EUR 0.4bn for its stake, Mayr-Melnhof expects cash proceeds of EUR 1.8-1.9bn. Completion is expected in the first half of 2027; the group then plans a special distribution of EUR 0.5-0.6bn and will focus on Board & Paper.
Why this mattersA leading cartonboard integrator separates its converting arm into a PE-backed carve-out, reshaping ownership of a major European folding-carton and pharma packaging platform.
- Packaging business valued at an enterprise value of EUR 2.4bn (USD 2.7bn), about 9x 2026E adjusted EBITDA
- KPS to hold 70% of the new holding company and Mayr-Melnhof 30%, an investment of about EUR 0.4bn; the stake can fall to 20% if 2027 EBITDA targets are missed
- Mayr-Melnhof expects cash proceeds of about EUR 1.8-1.9bn and net cash of about EUR 0.8-0.9bn after completion
- Special distribution to shareholders of EUR 0.5-0.6bn planned after completion
- Long-term cartonboard supply agreement between Board & Paper and the Packaging business
- Completion expected in the first half of 2027, subject to approvals and customary conditions