Mayr-Melnhof Group (MM) has reached an agreement to buy Essentra Packaging (100% equity interest in ESNT Packaging & Secure Solutions Limited (UK) and its subsidiaries and 100% equity interest in Essentra Packaging US Inc (USA) of Essentra plc (UK) per GBP 312 million, about 365 million euros.
The acquisition of Essentra Packaging serves to implement MM Packaging's strategy of growing in profitable and resilient segments such as pharmaceutical secondary packaging, and strengthens its position in the European market for pharmaceutical brochures and folding cartons. In addition, this purchase expands MM's presence in the US market with a significant position in the East Coast pharmaceutical hub.
Essentra Packaging reported sales of around £370 million for 2021, some €430 million euros. The company has 21 production sites in 10 countries in Europe and North America, complementing MM Packaging's current position in Scandinavia through the recently acquired Eson Pac and existing business in France. Essentra Packaging serves more than 800 customers worldwide, including 19 of the top 20 pharmaceutical companies, and employs more than 3500 people.
MM CEO, peter oswald, comments: “For us, the acquisition of Essentra Packaging is a game changer in the profitable, resilient and growing market for pharmaceutical packaging. We have identified attractive upside potential and synergies and are well positioned to master the integration challenge. The merger is an excellent complement to our current position and will enable further innovations for sustainable packaging solutions in the pharmaceutical sector. We have great confidence in creating a promising future together with the Essentra Packaging team.”
The execution of the transaction is subject to the fulfillment of typical transaction conditions. Closing is expected in the fourth quarter of 2022.