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09.12.2020 – 23:16

Mayr-Melnhof Karton AG

EANS-News: Mayr-Melnhof Karton to acquire Kotkamills

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  Corporate news transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is responsible for the content of this announcement.
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Proposed acquisition to strengthen MMK?s position in virgin-fiber based
cartonboard

Mergers - Acquisitions - Takeovers

Vienna - Mayr-Melnhof Group has agreed to acquire Kotkamills Group Oyj
("Kotkamills") from its shareholders for an Enterprise Value of around EUR 425
million, representing ca. 7.8x LTM EBITDA. The addition of Kotkamills will grow
MMK's position in the attractive virgin fiber based cartonboard (FBB) and Food
Service Board (FSB) market, complementing its established position in recycled
fiber based board. The proposed transaction will be immediately accretive to
earnings.

Kotkamills operates two board / paper machines at its integrated mill in Kotka
(Southern-Finland): a FBB/FSB board machine which started up in 2016 following
an investment of more than EUR 180 million with current sales volumes of around
260kt and a planned capacity of 400kt; a Saturated Kraft paper machine with
170kt capacity in which the company is a leading global supplier. Kotkamills
employs about 500 people and generates an LTM EBITDA of ca. EUR 55 million on
sales of ca. EUR 380 million.

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 Mayr-Melnhof 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


Mayr-Melnhof 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."




Further inquiry note:
Stephan Sweerts-Sporck
Investor Relations
Mayr-Melnhof Karton AG
Brahmsplatz 6, A-1040 Vienna, Austria
Tel.: (+43/1) 50136 ? 91180, Fax: (+43/1) 50136 ? 91195
e-mail: investor.relations@mm-karton.com, Website: http://www.mayr-melnhof.com


end of announcement                         euro adhoc
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issuer:       Mayr-Melnhof Karton AG
              Brahmsplatz 6
              A-1040 Wien
phone:        +43 1 50 136
FAX:
mail:      investor.relations@mm-karton.at
WWW:       www.mayr-melnhof.com
ISIN:         AT0000938204
indexes:      ATX, ATX PRIME
stockmarkets: Wien
language:     English