Mayr-Melnhof Group Completes Acquisition of Kotkamills in Finland
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The Mayr-Melnhof Group (MM) announced the completion of its acquisition of Kotkamills in Finland.
Mayr-Melnhof first announced the deal on Dec. 9, 2020 and agreed to purchase Kotkamills for an enterprise value of around EUR 425 million.
Through the acquisition, MM strengthens its position in the virgin fiber cartonboard (FBB) market with an attractive range of barrier cartonboard solutions that can replace PE (polyethylene) -coated cartonboard. Moreover, MM enters the growing cupstock market.
This acquisition complements MM's established market position in recycled cartonboard. In addition, MM diversifies the business with Saturating Kraft Paper in which Kotkamills is one of the global leaders.
"MM Kotkamills will take a strong and dynamic position within MM as the innovator in novel cupstock solutions based on water-based dispersion barriers applied by on-line technology," said Peter Oswald, CEO of the MM Group. "Our medium-term objective is to raise the sales volume to the capacity of close to 400,000 tonnes per year of cartonboard per annum. We are looking forward to a successful cooperation with our new colleagues."
MM Kotkamills operates the most modern virgin fiber board machine in Europe (built in 2016) as well as a machine for Saturating Kraft Paper with a capacity of 170,000 tonnes per year and a sawmill. The mill employs approximately 500 people and generated sales of around EUR 380 million in 2020.
