EL7.AI
Mergers & AcquisitionsMedium•10 November 2026•
3 min read

Mayr-Melnhof to sell 70% of packaging business at 2.4 billion euro valuation

Key Facts

1The deal values the entire packaging business at 2.4 billion euros, including debt, and involves the sale of a 70% stake to KPS.
2The group expects cash proceeds of between 1.8 billion and 1.9 billion euros upon closing.
3The group plans a special distribution of between 500 million and 600 million euros to shareholders after closing.
4The deal is targeted to close in the first half of 2027, and the group’s stake could fall to 20% if certain 2027 earnings targets are not met.

MM Group said on November 9, 2026, that it had agreed to sell a 70% stake in its packaging business to KPS Capital Partners in a deal valuing the entire business at 2.4 billion euros, including debt, according to Reuters via Euronext. The 2.4 billion euro figure is not the price of the stake being sold alone, but the valuation of the business, a majority of which will transfer to KPS when the deal closes. The group will retain a 30% stake in the business after closing. The deal changes the ownership structure of the group’s packaging operations, while it retains an interest in the business through its remaining stake. Available sources did not confirm the company’s share-price movement in the November 10 session, so this report does not include a share-price gain percentage.

MM Group expects cash proceeds from the deal of between 1.8 billion and 1.9 billion euros upon closing, Reuters reported via Euronext. The group plans to allocate between 500 million and 600 million euros to a special distribution to shareholders after closing. That makes the planned distribution part of the use of proceeds, alongside debt reduction and the pursuit of strategic opportunities. The group said the proceeds would be used for these purposes, while the proposed distribution remains subject to approvals, legal and regulatory considerations, and business conditions. Shareholders’ receipt of the special distribution is therefore tied to the deal closing and those conditions being met.

In addition to allocating the amount to the special distribution, the group said it intends to use the proceeds to repay debt, allowing it to direct part of the divestment proceeds toward reducing financial liabilities. It also included the pursuit of strategic opportunities in its plan for using the funds, without specifying any particular opportunities in the published information. The plan thus combines debt reduction, a return of part of the value to shareholders, and the retention of resources for strategic initiatives. However, the distribution decision and its amount remain subject to approvals, regulatory and legal considerations, and business conditions, according to Reuters via Euronext. Estimated cash proceeds range from 1.8 billion to 1.9 billion euros upon closing and should not be confused with the 2.4 billion euro valuation of the business.

The deal terms include the possibility that MM Group’s stake will fall to 20% if certain 2027 earnings targets are not met, according to Reuters via Euronext. The deal is expected to close in the first half of 2027, subject to the necessary approvals. The final ownership percentage therefore remains tied to the results against the specified 2027 targets, while the transfer of the stake depends on completing the approvals and procedures. As for the buyer’s background, Reuters said KPS managed about 19.1 billion dollars in assets at the end of June 2026 and invests in manufacturing and industrial companies. On the share’s performance, Reuters reported that it was down about 28% year to date through its November 9, 2026, report; that figure does not establish the share’s movement in the November 10 session.