Mayr-Melnhof Group has agreed to acquire International Paper (Poland) Holding sp. z.o.o. (Kwidzyn) from International Paper for a debt and cash free amount of around €670m and additionally assuming €33m of liabilities according to IFRS treatment. The acquisition of Kwidzyn forms part of MM’s strategy to grow in high quality virgin fibre based cartonboard with innovative, sustainable and cost effective FBB grades. The proposed transaction will be immediately earnings accretive.
At its integrated pulp and paper site in Poland, Kwidzyn operates a pulp mill with an annual capacity of around 400,000 tonnes and four cartonboard machines. The flagship is a FBB board machine with 260,000 tonne annual capacity. In addition, Kwidzyn has recently entered the MF kraft paper segment through the conversion of one of its paper machines to serve the growing demand for flexible fibre-based packaging products. Production of this machine is increasing up to an annual capacity of 75,000 tonned. FAbout 2,300 people are working at the mill. In 2020, it generated an Adjusted EBITDA of €92m on sales of €510m.
Peter Oswald, CEO, comments, “The acquisition of Kwidzyn perfectly complements our existing cartonboard business. It enables MMK to drive innovation for more sustainable packaging solutions in the growing virgin fibre-based cartonboard market and creates attractive new perspectives from the integration of pulp and paper at a site in Europe with cost advantages. We have great confidence in the highly qualified team of Kwidzyn to shape a promising common future together.”
