Mayr-Melnhof Packaging (Vienna, Austria) has come to an agreement with the owners of TANN Group on the 100% acquisition of the group headquartered in Traun, Austria.

TANN Group prints on and finishes externally sourced fine paper to produce tipping paper (cigarette filter paper) and is the global market leader in this area. Annual sales of approximately EUR 230 million are generated by eight production sites in seven countries and a worldwide workforce of around 1,100 employees, who are taken over.

Through this acquisition, MM Packaging extends its present position in cigarette packaging by the technologically closely related production of tipping paper. The aim is to further strengthen the profitability of MM Packaging along with the expansion of the value chain. Moreover, the development of the sites shall create new potential.

Pending approval of antitrust authorities, the closing is expected by year-end 2018 or the beginning of 2019. The equity purchase price will amount to approximately EUR 275 million.