MM Board & Paper to acquire Kotkamills
Proposed acquisition to strengthen MM Board & Paper’s position in virgin-fiber based cartonboard.
The cash payment will be funded from committed credit lines. The transaction is subject to customary completion conditions and regulatory approval. Closing of the transaction is expected by mid of 2021.
Strategic Rationale
- Strengthen MM Group’s competitive position in a growing European FBB and FSB market versus the two market leaders
- Create a strong second pillar in addition to Coated Recycled Board (RCB) and Coated Liner
- Benefit from ramp-up of FBB and FSB volumes (from current sales volumes of 260kt to planned capacity of 400kt)
- Offer barrier coated FSB solutions which can replace plastic and polyethylen-coated board
- Diversify the business by adding a new product (with Kotkamills’ strong competitive position in high-quality Saturating Base Kraft)
- Harvest synergy potential
MM Group CEO, Peter Oswald, comments: “The acquisition of Kotkamills is an ideal complement to our existing cartonboard business. It strengthens MM’s business model as a dedicated cartonboard and folding carton producer with a reinforced position in virgin fiber based cartonboard which has good growth potential. 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.”
