Mayr-Melnhof and a subsidiary of funds managed by Oaktree Capital Management, L.P. have reached an agreement on the sale of MM’s virgin fibre cartonboard mills located in Eerbeek, Netherlands and Baiersbronn, Germany, to Oaktree for an equity value of €104.6m and net debt subject to final closing accounts.
Eerbeek and Baiersbronn together have an annual capacity of about 245,000 tonnes of virgin cartonboard produced on two board machines and employ approximately 400 people. Sales reached €195m in 2020. The divestment is in line with and forms part of MM’s strategy to focus on new acquisitions and growth capex.
“We are pleased that our Eerbeek and Baiersbronn mills are to get a new owner who plans to invest in their future business development,” comments Peter Oswald, CEO, MM Group. “We especially thank the entire personnel for their great work during the past three decades with MM. The sale provides MM with an opportunity to realise significant cash proceeds for its further growth course.”
MM expect to close the sale in the third quarter of 2021.
“We are delighted to acquire the two mills, in which we will invest additional capital to strengthen the plants,” says Hermann Dambach, Managing Director, European Principal Group, Oaktree. “Over the years, we have successfully invested in multiple packaging assets in Europe and believe that the FBB market offers attractive future growth and innovation opportunities.”