Acquisition of Essentra Packaging to position MM as one of the world’s leading producers of pharmaceutical packaging

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EQS-News: Mayr-Melnhof Karton AG / Tag(s): Mergers & Acquisitions
Mayr-Melnhof Karton AG: acquisition of Essentra Packaging to position MM as one of the world’s leading producers of pharmaceutical packaging
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 Business for the Pharmaceutical and Healthcare Market, Creating an Attractive Platform for Future Growth

Mayr-Melnhof Group (MM) has agreed to acquire Essentra Packaging (100% of the shares of ESNT Packaging & Securing Solutions Limited (UK) and its affiliates, as well as 100% of the shares of Essentra Packaging US Inc ( United States)) from Essentra plc (United Kingdom) for a cash and debt-free consideration of £312 million (currently around €365 million).

The acquisition of Essentra Packaging implements MM Packaging’s strategy to expand into profitable and resilient segments such as pharmaceutical secondary packaging and strengthens its position in the European market for pharmaceutical cartons and leaflets. Additionally, this acquisition will expand MM’s presence in the US market with a significant position in the East Coast pharma hub.

Essentra Packaging announced 2021 sales of approx. GBP 370 million (currently around EUR 430 million). Essentra Packaging has 21 manufacturing sites in 10 countries across Europe and North America, ideally complementing MM Packaging’s current positions in the Nordics through the recent acquisition of Eson Pac and its legacy operations in France. The company delivers to a global customer base of more than 800 customers, including 19 of the top 20 pharmaceutical companies. Essentra Packaging employs over 3,500 people.

MM CEO Peter Oswald comments: “For us, the acquisition of Essentra Packaging is a game-changer in the profitable, resilient and growing pharmaceutical packaging market. We have identified attractive growth potential and synergies and are well prepared to meet the integration challenge. Perfectly suited to our current position, our new combined entity will enable more innovation for sustainable pharmaceutical packaging solutions. We have great confidence to shape a bright common future with the team at Essentra Packaging.

The purchase price will be paid from existing cash reserves and committed lines of credit. The transaction is subject to the satisfaction of customary closing conditions (eg, regulatory approvals). Closing of the transaction is expected in the fourth quarter of 2022.

Strategic rationale

  • Essentra Packaging is a unique opportunity for MM to become a global player in secondary pharmaceutical packaging enabling more innovation and more investment in sustainability

  • Pharmaceutical packaging is a stable and resilient business with strong cash generation

  • Essentra Packaging offers substantial synergies with MM’s Pharma Packaging and MM Board&Paper

  • Essentra Packaging offers a solid platform for growth

Dial in details for a conference call with investors today Friday, June 24, 2022 at 10:00 a.m. CEST and a presentation is available on our website https://www.mm.group.

MM is a leading producer of cardboard and folding boxes with an attractive offer in kraft papers and uncoated fine papers. We promote sustainability 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 a turnover of around 4 billion euros and employs around 13,000 people excl. Essentra packaging.

For more information, please contact:
Stephan Sweerts-Sporck, Investor Relations
Mayr-Melnhof Karton AG, Brahmsplatz 6, A-1040 Vienna, Austria
Such. : (+43/1) 50136 – 91180, e-mail: [email protected]
Website: https://www.mm.group

24.06.2022 This Corporate News was distributed by EQS Group AG. www.eqs.com

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