MM Group sells 70% stake in MM Packaging to KPS in €2.4B deal
Key takeaways
- MM Group has agreed to sell a 70% stake in MM Packaging to KPS at a €2.4 billion enterprise valuation.
- MM Group will retain a 30% stake, while MM Packaging will operate as a standalone company.
- KPS aims to accelerate MM Packaging’s global growth through its manufacturing expertise and financial resources.
MM Group has signed a definitive agreement to sell its 70% stake in MM Packaging to the US private equity firm KPS Capital Partners, for an enterprise value of €2.4 billion (US$2.6 billion).
MM Group, headquartered in Vienna, Austria, will retain a 30% ownership stake in the packaging company, which, upon closing of the deal, will operate as a standalone company under the name of MM Packaging.
MM Group expects the transaction to generate cash proceeds of approximately €1.8–1.9 billion (US$2.02–2.13 billion) upon completion of the transaction.
“This transaction will allow MM Packaging to accelerate growth under the leadership of KPS, which has proven its expertise in managing large, global manufacturing and industrial businesses,” says Peter Oswald, CEO of MM Group.
“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.”
The deal is subject to required corporate and regulatory approvals, with completion expected in the first half of 2027. MM Group says it will focus on its Board and Paper business.
MM Packaging is a global manufacturer of fiber-based consumer packaging products, including folding cartons, labels, and leaflets for the F&B, pharmaceutical, healthcare, beauty, and personal and household care sectors.
MM Group says that its packaging business includes its Food and Premium Packaging operations, excluding its Iran and Tunisia operations, and its Pharma and Healthcare Packaging operations.
Global packaging offerings
As of June this year, KPS reports it has approximately US$19.1 billion in assets through its portfolio of investments and holdings, ranging from the automobile to automotive and industrial manufacturing to chemicals, food ingredients, and packaging.
Michael Psaros, co-founder and co-managing partner of KPS, says: “MM Packaging is an industry-leading business, and we are excited to take it to the next level as an independent company.”
“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, commitment to manufacturing excellence, and global presence to drive MM Packaging’s growth.”
Earlier this year, MM Board and Paper, a segment of MM Group, signed an agreement to acquire RDM’s fiber-based cartonboard mill operations in Arnsberg, Germany.
