The listed Mayr-Melnhof Karton AG (MM) is buying the Polish cartonboard company Kwidzyn from International Paper Holding for 670 million euros with 2,300 employees. In addition, the Austrians assume liabilities of around 33 million euros. “The acquisition of Kwidzyn is part of MM's strategy to grow in the high-quality virgin fiber board area with innovative, sustainable and cost-effective qualities”, announced MM on Friday.
The corresponding agreement for the acquisition has therefore been made. The closing is expected in the third quarter of this year. The planned transaction will have a direct impact on earnings, according to MM. In 2020, the Poles achieved an adjusted EBITDA of around 92 million euros with sales of around 510 million euros.
At the integrated pulp and paper site in Poland, Kwidzyn operates a pulp mill with a capacity of around 400,000 tons per year and four connected cardboard and paper machines. The centerpiece is a fresh fiber board machine with a capacity of 260,000 tons per year.
More sustainable packaging for the future
“The takeover of Kwidzyn is an ideal addition to our existing cardboard business”, Peter Oswald, CEO of the Mayr-Melnhof Group, was quoted in the company announcement. It enables Mayr-Melnhof Karton to drive innovations for more sustainable packaging solutions in the growing market for virgin fiber board and also creates “attractive new perspectives through the integration of pulp and paper at a European location with cost advantages.” Great trust is placed in the Kwidzyn team, which is highly qualified.
Regarding the strategic relevance of the acquisition for MM Karton, the company also said that the competitive position against the market leaders in Europe in the growing virgin fiber carton sector would be strengthened. The company also entered the flexible paper packaging and uncoated fine paper (UWF) business areas through an established low-cost manufacturer. Of course, synergies should also be used.
