The transaction is subject to customary completion conditions and regulatory approval, and the closing of the transaction is expected by mid-2021.
During more than five years of ownership steered by MB Funds, Kotkamills has established a strong market position as a consumer boards producer. With its acquisition of the company, Mayr-Melnhof hopes to grow its position in the virgin fibre-based cartonboard market, complementing its existing recycled fibre-based board business.
The group hopes that this transaction will also create a strong offering of barrier coated FSB solutions which can replace plastic and plastic-coated board, in addition to Mayr-Melnhof’s coated recycled board (CRB) and coated liner. Further, it has been projected that the addition of Kotkamills’ saturating kraft paper will diversify the business by adding a new product.
Mayr-Melnhof Group’s CEO, Peter Oswald, comments: “The acquisition of Kotkamills is an ideal complement to our existing carton board business. It strengthens our business model as a dedicated carton board and folding carton producer with a reinforced position in virgin fibre-based carton board which has good growth potential.
“Kotkamills adds significantly to our sustainability strategy, offering innovative solutions for plastic replacement. We have great confidence in the top-class team of Kotkamills to shape a promising future together.”
Kotkamills CEO, Markku Hämäläinen, comments: “From Kotkamills’ point-of-view this acquisition is a perfect match. Mayr-Melnhof Karton will provide Kotkamills a strong foothold in the carton board market with the barrier coated FSB solutions which can replace plastic and polyethylene-coated board.”