The acquisition will strengthen the position of MM Kotkamills in the virgin fiberboard segment. With this undertaking, the company has forayed into the growing cupstock market and saturating kraft paper in which Kotkamills is one of the global leaders.
August 04, 2021
The Mayr-Melnhof Group (MM) has acquired Kotkamills Group Oyj, Finland, which was agreed in December 2020. The enterprise value of the acquisition has been around USD 504.6 million (~EUR 425 million).
Through the takeover, MM strengthens its position in the virgin fiber cartonboard (FBB) market with an attractive range of barrier cartonboard solutions that can replace PE (polyethylene) – coated cartonboard. The company has also expanded its standing in the food service board (FSB) segment and complements its established market position for the recycled board. The planned transaction will have an immediate impact on earnings.
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Besides, MM has forayed into the growing cupstock market and saturating kraft paper in which Kotkamills is one of the global leaders.
“MM Kotkamills will take a strong and dynamic position within MM as the innovator in novel cupstock solutions based on water-based dispersion barriers applied by on-line technology. Our medium-term objective is to raise the sales volume to the capacity of close to 400,000 tonnes of cartonboard per annum. We are looking forward to successful cooperation with our new colleagues,” says Peter Oswald, CEO of the Mayr-Melnhof Group.
MM Kotkamills operates an advanced virgin fiberboard machine with a current sales volume of around 260,000 tonnes and one planned capacity of 400,000 tonnes as well as a machine for saturating kraft paper with a capacity of 170,000 tonnes. The mill employs approximately 500 people and has generated sales of around USD 451 million (~EUR 380 million) in 2020.
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MM is Europe’s largest producer of cartonboard and folding cartons focusing on sustainable and innovative fiber-based packaging solutions. In 2020, the group had generated sales of around USD 2.97 billion (~EUR 2.5 billion) and employed approx. 10,000 people.