MM to Acquire EssentraPackaging

MM acquires EssentraPackaging Mayr-Melnhof Group (MM) has agreed to acquire EssentraPackaging from Essentra plc (United Kingdom) for GBP 312 million in cash and debt-free (currently approximately EUR 365 million). This acquisition will enable MM Packaging to expand its carton, brochure and label activities for the pharmaceutical and healthcare markets, creating an attractive platform for further growth. The acquisition of EssentraPackaging implements MM Packaging's growth strategy in profitable and resilient segments such as pharmaceutical secondary packaging and strengthens its position in the European pharmaceutical carton and brochure market. Additionally, this acquisition will expand MM's footprint in the US market with a significant presence in the East Coast pharmaceutical hub. EssentraPackaging reported 2021 sales of GBP 370 million (currently approximately EUR 430 million). EssentraPackaging operates 21 production facilities in 10 countries across Europe and North America and, through recently acquired EsonPac and former operations in France, ideally complements MM Packaging's existing positions in Scandinavia. The company serves a global customer base of more than 800 customers, including 19 of the top 20 pharmaceutical companies. EssentraPackaging employs more than 3,500 people. MM Chief Executive Officer Peter Oswald commented: "For us, the acquisition of EssentraPackaging is a game-changer in the profitable, resilient and growing pharmaceutical packaging market. We have identified attractive upside potential and synergies and are prepared to tackle the integration challenge. Our new combined entity, in perfect alignment with our existing position, will enable more innovation in sustainable pharmaceutical packaging solutions. We have great confidence in shaping a promising joint future together with the EssentraPackaging team." The purchase price will be paid from existing cash reserves and committed credit lines. The transaction is subject to customary closing conditions (such as regulatory approvals). The transaction is expected to close in the fourth quarter of 2022. Strategic Rationale • EssentraPackaging represents a unique opportunity for MM to become a global player in secondary pharmaceutical packaging, providing more innovation and greater investment in sustainability. • Pharmaceutical packaging is a high cash-generating stable and resilient business. • EssentraPackaging offers significant synergies with MM's PharmaPackaging and MM Board&Paper. • EssentraPackaging provides a strong platform for growth. SOURCE