News | February 12, 2021

Mayr-Melnhof Karton Acquires Kwidzyn (Poland) Plant From International Paper

MMK is growing through the planned acquisition of virgin fiber board and creates attractive development potential

The Mayr-Melnhof Group has reached an agreement that International Paper (Poland) Holding sp. zoo ("Kwidzyn") from International Paper for around EUR 670 million ("debt and cash free") and to assume additional liabilities of around EUR 33 million from usufructuary rights and operating leases according to IFRS. The acquisition of Kwidzyn is part of MM's strategy to grow in the high-quality virgin fiber board (FBB) sector with innovative, sustainable and cost-effective qualities. The planned transaction will have an immediate impact on earnings.

At the integrated pulp and paper location in Poland, Kwidzyn operates a pulp mill with a capacity of around 400,000 t pa and four connected cardboard / paper machines: The core is an FBB board machine with a capacity of 260,000 t pa. In addition, Kwidzyn has recently been converted to entered the MF Kraft paper division to meet the growing demand for flexible paper packaging. The production on this machine is to be increased up to a capacity of 75,000 t pa. In addition, Kwidzyn operates two of the most attractive copy paper machines (UWF) in Europe with a total capacity of 410,000 t pa. Approx. 2,300 employees work in the plant. In 2020, an adjusted EBITDA of approx. EUR 92 million was achieved with sales of approx. EUR 510 million.

The purchase price is financed through committed credit lines from banks and the issuance of a promissory note loan. The transaction is subject to customary closing conditions. The transaction is expected to close in the third quarter of 2021.

Strategic relevance

  • Expansion of the competitive position of the MM Group against the two market leaders in the growing European FBB market through innovation of sustainable products and a broader range of services
  • Entry into the attractive business field of flexible paper packaging
  • Entry into the area of ​​uncoated fine paper (UWF) through an established low-cost manufacturer
  • Use of the advantageous cost position for further growth in FBB or other packaging qualities

Use of synergy potential
MMag. Peter Oswald, CEO of the Mayr-Melnhof Group, comments: "The takeover of Kwidzyn is an ideal addition to our existing cardboard business. It enables MMK to drive innovations for more sustainable packaging solutions in the growing market for virgin fiber cardboard and also creates attractive new perspectives through the integration of pulp and paper at a European location with cost advantages. We have great confidence in the highly qualified team at Kwidzyn to shape a promising future together. "

Source: Mayr-Melnhof Karton