Mayr-Melnhof Group (MM) has agreed to acquire Essentra Packaging (100% of the shares in ESNT Packaging & Securing Solutions Limited (UK) and its affiliated companies, as well as 100% of the shares in Essentra Packaging US Inc (US) from Essentra plc (UK) for a cash and debt free consideration of GBP 312 million (currently approx. Euro 365 million).
The acquisition of Essentra Packaging implements MM Packaging’s strategy to grow in profitable and resilient segments such as pharma secondary packaging and strengthens its position in the European pharma carton & leaflets market. In addition, this acquisition will expand MM’s footprint into the US market with an important position in the East-Coast pharma hub.
Essentra Packaging has reported 2021 sales of c. GBP 370 million (currently approx. Euro 430 million). Essentra Packaging has 21 manufacturing sites in 10 countries in Europe and North America ideally complementing MM Packaging’s current positions in the Nordics through recently acquired Eson Pac and its legacy business in France. Essentra Packaging employs more than 3,500 people.
The purchase price will be paid from existing cash reserves and committed credit lines. The transaction is subject to the fulfilment of customary closing conditions (e.g. regulatory approvals). Closing of the transaction is expected in 4Q 2022.
MM is a leading producer of cartonboard and folding cartons with an attractive offer in kraft papers and uncoated fine papers.