Mayr-Melnhof Karton AG, which trades as MM Group, said Monday it had signed a binding agreement to sell its packaging operations to a newly formed holding company of KPS Capital Partners¹.

KPS would hold 70% of that holding company after completion and MM Group 30%, the company said¹. The packaging perimeter named in the statement is food and premium packaging excluding Iran and Tunisia, plus pharma and healthcare packaging¹.

MM Group valued the business at an enterprise value of €2.4 billion, about 9 times 2026 estimated adjusted EBITDA¹. After an estimated €0.4 billion reinvestment for the 30% stake, it expected cash proceeds of about €1.8 billion to €1.9 billion, subject to taxes, purchase-price adjustments and timing¹.

Its holding could fall to as low as 20% if certain 2027 EBITDA targets are missed, with no extra payment either way, the company said¹. ORF reported the same 70/30 split, the €2.4 billion figure, and the possible drop to 20%.

MM Group said it would focus on board and paper, keep a cartonboard supply contract with the packaging unit, and after close expects net cash of about €0.8 billion to €0.9 billion¹. It said it intends to repay debt, pursue strategic opportunities, and, subject to approvals and conditions, plan a special distribution of €0.5 billion to €0.6 billion¹.

CEO Peter Oswald said the retained 30% would let MM Group share in future value creation and that the group planned a substantial capital return to shareholders¹. KPS co-founder Michael Psaros said the firm would take the packaging business to the next level as an independent company¹.

The supervisory board has approved the deal, the company said¹. Completion is subject to corporate and regulatory approvals and other conditions, including French worker-consultation steps, and is expected in the first half of 2027¹. Reuters also reported the transaction.