Mayr-Melnhof Packaging makes an offer to acquire a specialty packaging company in France
Posted on:
MM Packaging has made an offer to acquire the folding carton operations of Ileos SA, owned by funds of Oaktree Capital Management L.P.
Today, MM Packaging has announced it has made an offer to acquire the folding carton operations of Ileos SA, owned by funds of Oaktree Capital Management L.P.
Ileos has five sites producing folding cartons for the pharmaceutical industry and two sites producing folding cartons for luxury articles and cosmetics. All sites are located in France. In 2014 sales amounted to approximately EUR 115 million; about 26,000 tons of cartonboard and 6,000 tons of paper were converted. The purchase price will amount to approximately EUR 80 million.
Customer portfolio as well as market share fit into the industrial growth strategy of MM Packaging.
The transaction will be subject to customary closing conditions. The press release is available on the MM Packaging website.
Nicholas Mockett from Moorgate Capital commented to ECMA as follows:
“This latest development follows similar deals over the last two years such as the sale of Contego to Essentra; the acquisition by Carlyle of Chesapeake/MPS, the sale of Graphic Packaging’s Medica to Sullivan Street; and the sale of Clondalkin Specialist Packaging to Essentra. As many in the cartons industry will appreciate, there is a rapidly changing landscape in pharmaceutical packaging as suppliers build multi-national footprints to serve the global pharmaceutical producers. This trend looks set to continue as the pharmaceutical industry itself continues to consolidate and pharma demand growth continues with the ageing populations of the western world combined with the burgeoning middle classes in emerging markets. The business also serves the luxury markets such as champagne, cognac, and fragrance which are also benefitting from the growing middle class in emerging markets and the move to premium products in established markets.”
