Austrian packaging maker Mayr-Melnhof Karton agreed on Monday to sell 70 percent of its packaging business to KPS Capital Partners, an American private equity firm, for 2.4 billion euros .
The packaging business will be transferred to a newly founded holding company of KPS Capital Partners . After closing, KPS will own 70 percent of that holding company and Mayr-Melnhof Karton 30 percent. The division includes Food & Premium Packaging, excluding Iran and Tunisia, and Pharma & Healthcare Packaging .
The 2.4 billion euro enterprise value equals about nine times the division's forecast EBITDA (earnings before interest, taxes, depreciation and amortization) for this year . After deducting its estimated 0.4 billion euro investment for the retained 30 percent stake, Mayr-Melnhof expects cash proceeds of 1.8 to 1.9 billion euros when the deal closes . The company has earmarked between 500 and 600 million euros for a special dividend to shareholders .
If the business misses certain EBITDA targets next year, Mayr-Melnhof's stake could drop to a minimum of 20 percent without KPS paying extra . The Mayr-Melnhof Group expects net liquidity of 800 to 900 million euros . The amount is designated for debt repayment or strategic opportunities .
The transaction is expected to close in the first half of 2027 .
