EQS-News: Mayr-Melnhof Karton AG / Key word(s): Mergers & Acquisitions
Mayr-Melnhof Karton AG: Acquisition of Essentra Packaging to position MM
as a leading global pharma packaging producer

24.06.2022 / 08:02
The issuer is solely responsible for the content of this announcement.


Proposed acquisition expands MM Packaging’s cartons, leaflets and labels
activities for the pharma and health market creating an attractive
platform for further growth

Mayr-Melnhof Group (MM) has agreed to acquire Essentra Packaging (100% of
the shares in ESNT Packaging & Securing Solutions Limited (UK) and its
affiliated companies, as well as 100% of the shares in Essentra Packaging
US Inc (US)) from Essentra plc (UK) for a cash and debt free consideration
of GBP 312 million (currently approx. EUR 365 million).

The acquisition of Essentra Packaging implements MM Packaging's strategy
to grow in profitable and resilient segments such as pharma secondary
packaging and strengthens its position in the European pharma carton &
leaflets market. In addition, this acquisition will expand MM’s footprint
into the US market with an important position in the East-Coast pharma

Essentra Packaging has reported 2021 sales of c. GBP 370 million
(currently approx. EUR 430 million). Essentra Packaging has 21
manufacturing sites in 10 countries in Europe and North America ideally
complementing MM Packaging’s current positions in the Nordics through
recently acquired Eson Pac and its legacy business in France. The company
delivers to a global customer base of 800+ customers, including 19 of the
top 20 pharma companies. Essentra Packaging employs more than 3,500

MM CEO, Peter Oswald, comments: “For us, the acquisition of Essentra
Packaging is a game-changer in the profitable, resilient and growing
pharma packaging market. We have identified attractive upside potential
and synergies and are well-prepared to take on the integration challenge.
With an excellent fit to our current position, our new combined entity
will enable more innovation for sustainable pharma packaging solutions. We
have great confidence in shaping a promising common future together with
the team of Essentra Packaging.”

The purchase price will be paid from existing cash reserves and committed
credit lines. The transaction is subject to the fulfilment of customary
closing conditions (e.g. regulatory approvals). Closing of the transaction
is expected in Q4 2022.

Strategic Rationale

• Essentra Packaging is a unique opportunity for MM to become a global
player in secondary pharma packaging enabling more innovation and more
investment in sustainability
• Pharma packaging is a stable and resilient business with high cash
• Essentra Packaging offers substantial synergies with MM’s Pharma
Packaging and MM Board&Paper
• Essentra Packaging provides a strong platform for growth

Dial in details for an investor conference call today on Friday, June 24,
2022 at 10:00 a.m. CEST and a presentation are available from our website

MM is a leading producer of cartonboard and folding cartons with an
attractive offer in kraft papers and uncoated fine papers. We promote
sustainable development through innovative, recyclable packaging and paper
products made from renewable, fiber-based raw materials. Therefore, all
activities related to sustainability, environment and safety have special
priority. MM generates sales of approximately EUR 4 billion and employs
around 13,000 people excl. Essentra Packaging.


For further information, please contact:
Stephan Sweerts-Sporck, Investor Relations
Mayr-Melnhof Karton AG, Brahmsplatz 6, A-1040 Vienna, Austria
Tel.: (+43/1) 50136 – 91180, e-mail: investor.relations@mm.group
Website: https://www.mm.group



24.06.2022 This Corporate News was distributed by EQS Group AG.


Language: English
Company: Mayr-Melnhof Karton AG
Brahmsplatz 6
1040 Wien
Phone: 0043 1 501 36 91180
Fax: 0043 1 501 36 91391
E-mail: investor.relations@mm.group
Internet: www.mm.group
ISIN: AT0000938204
WKN: 93820
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Frankfurt (Basic
Board), Munich, Stuttgart; Vienna Stock Exchange (Official
EQS News ID: 1382755

End of News EQS News Service

1382755  24.06.2022