US private equity firm KPS Capital Partners, LP, has signed a definitive agreement to acquire 70% controlling stake in MM Packaging from Mayr-Meinhof Karton AG (MM Group) at an enterprise value of €2.4 billion.
Following the announcement, MM group shares surged nearly 15% to trade around €77, driven by the deal’s strong valuation and planned capital returns to investors.
Under the terms of the agreement, MM group will retain a 30% minority ownership stake and expects to receive approximately €1.8 billion to €1.9 billion in net cash proceeds at closing. Upon completion, MM Packaging will separate from its parent company to operate as a standalone business under its existing name.
Headquartered in Vienna, MM Packaging is a global manufacturer of folding cartons, labels, and leaflets for the food, pharmaceutical, healthcare, and consumer care industries. The business operates more than 50 production sites across 19 countries, holding market-leading positions in European food cartons and global secondary pharmaceutical packaging.
KPS Co-Founder and Co-Managing Partner Michael Psaros says, “MM Packaging is an industry leading business, and we are excited to take it to the next level as an independent company. We appreciate the trust MM Group is placing in KPS and look forward to our partnership. KPS has had extraordinary success investing in the packaging sector across paper, board, and metal substrates. We will leverage our deep industry experience, financial resources, and commitment to manufacturing excellence and global presence to drive MM Packaging’s growth.”
MM Group CEO Peter Oswald says, “This transaction will allow MM Packaging to accelerate growth under the leadership of KPS, who has proven their expertise in managing large, global manufacturing and industrial businesses. Our retained shareholding of 30% will enable MM Group to participate in its future value creation under KPS ownership. We are looking forward to our partnership with KPS.”
Completion of the acquisition remains subject to customary regulatory and corporate approvals, as well as worker representative consultations in France.
