Mayr-Melnhof Group acquires Essentra Packaging

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Mayr-Melnhof Group (MM) 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 (USA) of Essentra plc (UK ) for a transaction without cash and counterpart debt of 312 million GBP (currently approximately 365 million euros).

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. £370m (currently around €430m). 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. Essentra Packaging employs over 3,500 people.

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.

MM is a leading producer of cardboard and folding boxes with an attractive offer in kraft papers and uncoated fine papers.

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