Mayr-Melnhof Karton to acquire Kotkamills

10 Dec 2020 − 

Acquisition is to strengthen the company's position in fresh fiber-based cartonboard

Mayr-Melnhof Group plans to acquire Kotkamills Group Oyj from its shareholders for around €425m.

Kotkamills operates two paper and board machines at its integrated mill in Kotka, southern Finland: a FBB/FSB board machine with current sales volumes of around 260.000 tpy and a capacity of 400.000 tpy, and a saturated kraft paper machine with 170.000 tpy capacity in which the company is a leading global supplier. Kotkamills employs about 500 people and generates an Ebitda of about €55m on sales of approximately €380m.

The company said that the addition of Kotkamills would grow its position in the fresh fiber based cartonboard (FBB) and Food Service Board (FSB) market, complementing its established position in recycled fiber based board. Mayr-Melnhof expects the proposed transaction to be immediately accretive to its earnings.

The cash payment will be funded from committed credit lines. The transaction is subject to customary completion conditions and regulatory approval. Closing of the transaction is expected by mid of 2021.

This article is an excerpt from our article on the takeover of Kotkamills by Mayr Melnhof Karton.

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