MB Funds to sell Kotkamills to trade

The EV represents circa 7.8x LTM EBITDA.

The sale comes five years after Eagle Industries, a newco formed by MB Funds, Nordic Mezzanine, Elo Mutual Pension Insurance Company, Finnish Industry Investment and Kotkamills management, acquired the company from Opengate Capital.

Mergermarket previously reported that the process had not been straightforward, as different types of buyers had different views on the asset, and also due to the uncertainty caused by the pandemic. 

Through the addition of Kotkamills, MMK will grow its position in the virgin fiber based cartonboard (FBB) and food service board (FSB) markets, complementing its position in recycled fiber based board.

The transaction is subject to regulatory approval and is due to complete by mid-2021.

Company
Founded in 2010 and headquartered in Kotka, Kotkamills is a manufacturer of cardboard packaging. Its brands include Absorbex, a producer of saturating base kraft paper for the laminate and plywood industries, and Aegle and Isla, producers of recyclable, repulpable and renewable card boards for the packaging and food service industries.

It employs about 500 people and generates an EBITDA of €55m and revenues of €380m.

People
Mayr-Melnhof Group - Peter Oswald (CEO).

Advisers
Vendor – Macquarie Capital (M&A).

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