Mayr-Melnhof Group has signed an agreement to acquire the entire share capital of Kotkamills Group Oyj from its shareholders. The transaction is subject to customary completion conditions and regulatory approval. Closing of the transaction is expected by mid of 2021. The proposed acquisition will strengthen Mayr-Melnhof’s position in virgin-fiber based carton board.
Mayr-Melnhof is Europe's third largest producer of folding boxboard and strengthens its position as a manufacturer of packaging boards with the Kotkamills acquisition. According to the company’s CEO, Peter Oswald, the deal complements Mayr-Melnhof’s business model as a board and folding boxboard manufacturer, reinforced by virgin fiberboard. Kotkamills' innovative and plastic replacement products support Mayr-Melnhof's sustainability strategy.
The buyer will receive a newer plant, as Kotkamills invested EUR 180 million in the plant some years ago. The investment transformed the paper machine into a modern board machine, which produces not only packaging board but also fully recyclable plastic food board. The Kotkamills board machine was launched in 2016, and according to the company, it is one of the most advanced in the world in terms of technology with its bottom board, coating and packaging lines.
Kotkamills CEO Markku Hämäläinen comments on the transaction from Kotkamills' point of view as a complete match. Kotkamills for folding boxboard and protective layer board Mayr-Melnhof offers a strong foothold in the cardboard market.
