Mayr-Melnhof has signed an agreement to acquire the entire share capital of Kotkamills Group Oyj. The transaction is subject to customary completion conditions and regulatory approval. Closing of the transaction is expected by mid of 2021. The proposed acquisition will strengthen Mayr-Melnhof’s position in virgin-fibre based cartonboard.
The integrated Kotka mill operates a board machine which started up in 2016 with a production of folding box board and food service boards with the capacity of 400,000 tons per year and a Saturating Kraft paper machine with 170,000 ton capacity.
With the acquisition of Kotkamills, Mayr-Melnhof will grow its position in the virgin fibre-based cartonboard market, complementing its strong recycled fibre-based board business. The transaction will also create a strong offering of barrier coated FSB solutions which can replace plastic and plastic-coated board in addition to Mayr-Melnhof’s Coated Recycled Board (CRB) and Coated Liner. Further, the addition of Saturating Kraft Paper will diversify the business by adding a new product.
Mayr-Melnhof Group CEO, Peter Oswald, comments, “The acquisition of Kotkamills is an ideal complement to our existing cartonboard business. It strengthens MM’s business model. Kotkamills adds significantly to MM’s sustainability strategy offering innovative solutions for plastic replacement. We have great confidence in the top-class team of Kotkamills to shape a promising future together.”
Kotkamills CEO, Markku Hämäläinen, comments, “From Kotkamills’ point-of-view this acquisition is a perfect match. Mayr-Melnhof Karton will provide Kotkamills a strong foothold in the cartonboard market with the barrier coated FSB solutions which can replace plastic and polyethylene-coated board.”
