Austria's Mayr-Melnhof group will part with Tann Group and exit tipping paper business.
Mayr-Melnhof (MM) announced it had agreed with Indonesia's Evergreen Hill Enterprise on the sale of 100 per cent of the shares in its tipping paper subsidiary Tann Group for a cash and debt-free enterprise value of €360m.
Tann Group, which comprises seven production sites in Austria, Canada, China, Germany, Turkey and the Philippines, prints on and finishes externally sourced fine paper to produce tipping paper for customers in the cigarette and tobbacco industry. The group has a global workforce of around 730 employees and generates annual sales of approximately €220m.
According to MM, the group decided to sell the tipping paper business as it was unrelated to cartonboard and consumer packaging.
Evergreen Hill Enterprise is part of an Indonesian-based privately held group of diversified companies. Last year, Evergreen Hill Enterprises had already acquired cigarette, tipping and wrapping paper manufacturer SWM International.
