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Finance

Austria's MM Group to sell majority stake in packaging business in $2.7 billion deal

Published by Global Banking & Finance Review

Posted on November 9, 2026

2 min read

· Last updated: November 9, 2026

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MM Group to Sell Majority Stake in Packaging Business for $2.7 Billion

MM Group Divests Majority Stake in Packaging Unit

Nov 9 (Reuters) - Austrian firm Mayr-Melnhof Karton said on Monday it would sell a 70% stake in its packaging business to US private equity firm KPS Capital Partners in a deal valuing the business at €2.4 billion ($2.69 billion), including debt.

Strategic Refocus and Retained Stake

The company, also known as MM Group, will focus on its cartonboard and paper business and keep a 30% stake in the packaging business, which will operate as a standalone company.

Key Details of the Transaction

Here are more details:

Financial Implications

• MM Group expects cash proceeds of €1.8 billion to €1.9 billion, which it will use to repay debt, pursue strategic opportunities and return €500 million to €600 million to shareholders

Future Stake Adjustments

• Its stake in the packaging business could fall to 20% if certain 2027 earnings targets are missed, with no additional payments to the company

Deal Timeline and Approvals

• The deal, approved by MM Group's supervisory board, is expected to close in the first half of 2027, subject to regulatory and other approvals

Market and Investor Context

• Shares of the company are down about 28% this year

About KPS Capital Partners

• KPS invests in manufacturing and industrial companies and had assets under management of about $19.1 billion as of June-end

Currency Exchange Rate

($1 = 0.8926 euros)

Reporting Credits

(Reporting by Disha Mishra in Bengaluru; Editing by Leroy Leo and Sahal Muhammed)

Key Takeaways

  • MM Group retains 30% stake (possibly falling to 20% if 2027 earnings targets are missed) and will focus on its Board & Paper division while packaging business becomes standalone under KPS support (marketscreener.com).
  • Deal values packaging business at ~9× 2026E EBITDA; MM expects net cash of €0.8–0.9 billion post‑deal and plans a special shareholder distribution of €500–600 million (marketscreener.com).
  • KPS Capital Partners manages ~$19.1 billion in assets (as of June 30 2026) and specializes in industrial carve‑outs, aligning with MM’s aim to unlock growth in the standalone packaging unit (webdisclosure.fr).

References

Frequently Asked Questions

Who is acquiring the majority stake in MM Group's packaging business?
US private equity firm KPS Capital Partners is acquiring a 70% stake in MM Group's packaging business.
How much is the MM Group packaging business deal valued at?
The deal values MM Group's packaging business at €2.4 billion ($2.69 billion), including debt.
What will MM Group focus on after the sale?
After the sale, MM Group will focus on its cartonboard and paper business and retain a minority stake in packaging.
When is the MM Group and KPS deal expected to close?
The deal is expected to close in the first half of 2027, subject to regulatory and other approvals.
What will MM Group do with the cash proceeds from the sale?
MM Group expects to use the proceeds to repay debt, pursue strategic opportunities, and return €500-600 million to shareholders.

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