The proposed acquisition will bolster MMK’s position in the virgin-fiber-based carton board segment.
December 11, 2020
Mayr-Melnhof Group has announced the plan to acquire Kotkamills Group Oyj – Kotkamills, from its shareholders for an Enterprise Value of around EUR 425 million. The inclusion of Kotkamills will strengthen MMK’s position in the attractive virgin fiber based cartonboard (FBB) and Food Service Board (FSB) market, augmenting its already established position in recycled fiber based board segment.
At present, Kotkamills operates two board and paper machines at its integrated mill in Kotka (Southern-Finland). A FBB/FSB board machine which started up in 2016 following an investment of more than EUR 180 million with current sales volumes of around 260 kt and a planned capacity of 400 kt; a Saturated Kraft paper machine with 170 kt capacity in which the company is a leading global supplier.
The group hopes that this transaction will also create a strong offering of barrier coated FSB solutions which can replace plastic and plastic-coated board, in addition to Mayr-Melnhof’s coated recycled board (CRB) and coated liner. Further, it has been projected that the addition of Kotkamills’ saturating kraft paper has diversified the business by adding a new product.
Peter Oswald, CEO, Mayr-Melnhof Group, comments: “The acquisition of Kotkamills is an ideal complement to our existing cartonboard business. It strengthens MM’s business model as a dedicated cartonboard and folding carton producer with a reinforced position in virgin fiber based cartonboard which has good growth potential. Kotkamills adds significantly to MM’s sustainability strategy offering innovative solutions for plastic replacement. We have great confidence in the top-class team of Kotkamills to shape a promising future together.”
The transaction is subject to customary completion conditions and regulatory approval and the closing of the transaction is expected by mid-2021.
Markku Hämäläinen, CEO, Kotkamills, states: “From Kotkamills’ point-of-view this acquisition is a perfect match. Mayr-Melnhof Karton will provide Kotkamills a strong foothold in the carton board market with the barrier coated FSB solutions which can replace plastic and polyethylene-coated board.”