EQS-News: Mayr-Melnhof Karton AG: MM Group to sell majority stake in its Packaging business to KPS Capital Partners and plans a special distribution to shareholders

EQS-News: Mayr-Melnhof Karton AG / Key word(s): Strategic Company Decision
   Mayr-Melnhof Karton AG: MM Group to sell majority stake in its Packaging
   business to KPS Capital Partners and plans a special distribution to
   shareholders

   09.11.2026 / 22:05 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     •  Packaging business to pursue an active, independent growth strategy
       supported by KPS, a leading private equity investor in manufacturing
       and industrial companies
     • KPS will hold a 70 % equity stake in a new holding company that will
       acquire the Packaging business, while MM Group will hold a 30 % stake
       at completion of the transaction to participate in the future value
       creation
     • Transaction values the Packaging business at an enterprise value of
       EUR 2.4 billion
     • MM Group to focus on its Board & Paper business and support the
       Packaging business as minority partner in the partnership with KPS
     • Use of cash proceeds to repay debt, pursue strategic opportunities and
       plan a special distribution to shareholders in the amount of EUR 0.5
       to 0.6 billion after completion of the transaction

   Mayr-Melnhof Karton AG (“MM Group”) has signed a binding transaction
   agreement to sell its Packaging operations (“Packaging business”) to a
   newly established company (“new holding company”) of KPS Capital Partners,
   LP (“KPS”). KPS will hold 70% of that holding company and MM Group will
   hold 30% following completion of the transaction. The Packaging business
   comprises MM Group’s Food & Premium Packaging operations (excluding the
   Iran and Tunisia operations) as well as the Pharma & Healthcare Packaging
   operations. Through its equity interest in the new holding company, MM
   Group will continue to participate in the future development and value
   creation of the Packaging business.

   Strategic Rationale
   The transaction will separate MM Group’s Packaging and Board & Paper
   businesses, enabling each to pursue its strategy and capital allocation
   priorities with greater focus. The Packaging business already operates
   largely independently. As a standalone company, the Packaging business is
   expected to pursue organic growth as well as selective acquisitions,
   supported by KPS’s experience in industrial carve outs and track record of
   driving operational improvement and sustainable growth.

   Following completion of the transaction, MM Group will focus on its Board
   & Paper business. MM Group will also support the continued success of the
   Packaging business as a minority partner with KPS. A long-term cartonboard
   supply agreement will secure the continuous supply of cartonboard from the
   Board & Paper business to the Packaging business post completion of the
   transaction.

   Deal Terms
   The transaction values the Packaging business at an enterprise value of
   EUR 2.4 billion, corresponding to an implied 2026E EV / adj. EBITDA
   multiple of approximately 9x.

   Net of the estimated investment of approximately EUR 0.4 billion for its
   30 % equity interest in the new holding company, MM Group expects the
   transaction to generate cash proceeds of approximately EUR 1.8 to 1.9
   billion upon completion of the transaction. The final cash proceeds will
   depend on the level of taxes arising from the transaction, standard
   purchase-price-adjustment mechanisms and the timing of completion.

   MM Group’s equity interest in the new holding company could be reduced to
   a minimum of 20 % if certain EBITDA targets for the financial year 2027
   are not achieved, with no additional consideration payable to or by MM
   Group as a result.

   Use of Proceeds
   Following completion of the transaction, MM Group expects to have net cash
   of approximately EUR 0.8 to 0.9 billion and thus significantly improved
   financial flexibility. MM Group intends to use the proceeds to repay debt,
   for strategic opportunities and for planned distributions to shareholders.
   Subject to the receipt of all required corporate approvals, applicable
   legal and regulatory considerations, and the prevailing business
   conditions at the relevant time, MM Group is planning a special
   distribution of EUR 0.5 to 0.6 billion to its shareholders after
   completion of the transaction.

   Peter Oswald, CEO of MM Group, comments: “Over the last years, we have
   created substantial growth and shareholder value in MM Packaging. This
   transaction will allow the business to continue its growth under the
   leadership of KPS, a leading private equity investor in manufacturing and
   industrial companies. Our retained shareholding of 30 % will enable MM
   Group to participate in its future value creation. As the European leader
   in folding cartonboard, our Board & Paper business will become an
   independent supplier to the packaging industry. Following the
   transaction, MM Group will have a strong balance sheet and the financial
   resources to develop its business organically and through selected
   acquisitions and partnerships. At the same time, we plan a substantial
   distribution of capital to our shareholders.”

   Michael Psaros, Co-Founder and Co-Managing Partner of KPS, comments: “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.”

   Operations at both Packaging and Board & Paper will continue as normal
   following the signing of the transaction. The Packaging business will
   remain part of MM Group until completion of the transaction and retain the
   MM Packaging name after completion. Completion is subject to required
   corporate and regulatory approvals as well as other customary closing
   conditions and for the French Business, the acquisition is subject to
   consultation processes with workers representatives and is expected in the
   first half of 2027. After completion, MM Group will account for its 30 %
   stake in the Packaging business using the equity method.

   The transaction has been approved by MM Group’s Supervisory Board.

   J.P. Morgan is acting as sole financial advisor and Binder Grösswang and
   Linklaters LLP are serving as legal counsels to MM Group on the
   transaction.

   MM Group will hold a webcast for analysts and investors tomorrow, 10
   November 2026, at 10:00 a.m. CET. Registration details and the
   accompanying presentation are available on the MM Group website at
   [1]https://mm.group/.

   MM Group
   MM Group is a global leader in fibre-based consumer packaging, committed
   to enabling people to live better lives on a better planet. With a
   portfolio that includes cartonboard, folding cartons, kraft and fine
   papers, leaflets, and labels, MM delivers innovation with recyclability at
   its core. As a publicly listed company, MM Group combines long-term
   orientation with clear environmental accountability. 

   About KPS Capital Partners, LP
   KPS, through its affiliated management entities, is the manager of the KPS
   Special Situations Funds, a family of investment funds with approximately
   $19.1 billion of assets under management (as of June 30, 2026).  For over
   three decades, the Partners of KPS have worked vigorously to realize
   significant capital appreciation by making controlling equity investments
   in manufacturing and industrial companies across a diverse array of
   industries, including basic materials, branded consumer, healthcare and
   luxury products, automotive parts, capital equipment and general
   manufacturing.  KPS seeks to create value for its investors by working
   constructively with talented management teams to make businesses better,
   and generate investment returns by structurally improving the strategic
   position, competitiveness and profitability of its portfolio companies,
   rather than primarily relying on financial leverage.  The KPS Funds’
   portfolio companies currently generate aggregate annual revenues of
   approximately $26.1 billion, operate 277 manufacturing facilities in 25
   countries, and have approximately 62,000 employees, directly and through
   joint ventures worldwide (as of June 30, 2026).  The KPS investment
   strategy and portfolio companies are described in detail at
   [2]www.kpsfund.com. 

   Disclaimer
   Mayr-Melnhof Karton Aktiengesellschaft and its Group companies
   (hereinafter collectively or individually “MM”) expressly disclaim any
   warranty or liability as to accuracy or completeness of the information
   provided in this presentation.

   This presentation contains forward-looking statements, which involve known
   and unknown risks, uncertainties and other factors which may cause the
   actual results, performance or achievements of MM or industry results, to
   be materially different from any future results, performance or
   achievements expressed or implied by such forward-looking statements.
   These forward-looking statements speak only as of the date of this
   presentation.

   Subject to any obligations under applicable law or pursuant to any
   regulatory body, MM disclaims any obligation or undertaking to update or
   revise any of the forward looking statements in this presentation, whether
   as a result of new information, a change in MM´s expectations, or any
   events or circumstances that arise after the date of making any
   forward-looking statements. 

    

   For further information, please contact:
   Stephan Sweerts-Sporck, Investor Relations
   Mayr-Melnhof Karton AG, Brahmsplatz 6, A-1040 Vienna, Austria
   Tel.: +43 (0) 1 501 36 – 91180, e-mail: [email protected]
   Website: www.mm.group

    

    

    

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   09.11.2026 CET/CEST This Corporate News was distributed by [3]EQS Group

   View original content: [4]EQS News

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   Language:    English
   Company:     Mayr-Melnhof Karton AG
                Brahmsplatz 6
                1040 Wien
                Austria
   Phone:       0043 1 501 36 91180
   Fax:         0043 1 501 36 91391
   E-mail:      [email protected]
   Internet:    www.mm.group
   ISIN:        AT0000938204
   WKN:         93820
   Indices:     ATX
   Listed:      Regulated Unofficial Market in Frankfurt (Basic Board),
                Munich, Stuttgart, Tradegate BSX; Vienna Stock Exchange
                (Official Market)
   LEI Code:    5299001AMHDLKUM80611
   EQS News ID: 2431246


    
   End of News EQS News Service


   2431246  09.11.2026 CET/CEST

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