Mayr-Melnhof Karton, the Austrian group known as MM Group, has signed a binding transaction agreement to sell its packaging business to a newly established holding company of KPS Capital Partners. KPS will hold 70 percent of the holding company at completion and MM Group will retain 30 percent, so the Austrian group keeps a minority stake in the business it built rather than exiting outright.
The transaction values the packaging business at an enterprise value of 2.4 billion euros, which MM Group says corresponds to an implied multiple of approximately nine times expected 2026 adjusted EBITDA. The 2.4 billion euros is an enterprise value, not the cash MM Group will receive. Net of an estimated investment of about 0.4 billion euros for its retained 30 percent equity interest, MM Group expects cash proceeds of approximately 1.8 to 1.9 billion euros at completion, and it plans a special distribution to shareholders of 0.5 to 0.6 billion euros after completion, alongside debt repayment and strategic opportunities.
The retained stake carries a performance condition. MM Group’s equity interest in the new holding company could be reduced to a minimum of 20 percent if certain EBITDA targets for the financial year 2027 are not achieved, with no additional consideration payable by either side. The business being sold comprises the Food and Premium Packaging operations, excluding the operations in Iran and Tunisia, and the Pharma and Healthcare Packaging operations. It will remain part of MM Group until completion, operate as a standalone company under KPS ownership, and retain the MM Packaging name.
Completion is expected in the first half of 2027, subject to corporate and regulatory approvals and, for the French business, consultation processes with worker representatives. MM Group’s supervisory board has approved the transaction. After completion, MM Group will account for its 30 percent stake using the equity method and will focus on its Board and Paper business.
KPS, which manages approximately 19.1 billion dollars across its Special Situations Funds as of June 30, 2026, specialises in manufacturing and industrial carve-outs. The deal is the second large European industrial carve-out of this edition, and it follows the same pattern as the CNH and Kobelco transaction reported yesterday: a listed industrial group simplifying into a narrower business while a specialist owner takes control of the divested unit.