KPS agrees to buy MM Packaging from MM Group

KPS Capital Partners has signed a definitive agreement to acquire MM Packaging from Mayr-Melnhof Karton AG (MM Group) at an enterprise value of €2.4 billion. MM Group will retain a 30% ownership interest in the business. Completion is subject to corporate and regulatory approvals and other customary conditions, and for the French business, to worker consultation processes.

MM Packaging is headquartered in Vienna and operates more than 50 production sites in 19 countries with about 8,500 employees. It makes folding cartons, labels and leaflets for food and beverage, pharmaceutical, beauty and household care customers, and describes itself as the world's largest producer of secondary pharmaceutical packaging. Upon closing it will operate as a standalone company under the MM Packaging name.

KPS co-managing partner Michael Psaros said the firm would leverage its industrial experience, financial resources and global presence to drive growth. Paul, Weiss, Rifkind, Wharton and Garrison LLP and Schönherr acted as legal counsel to KPS, and Barclays Bank Ireland plc and Citi as financial advisers.