EANS-News: Mayr-Melnhof Karton to acquire Kwidzyn (Poland) mill from International Paper CNE

2/12, 6:35 AM (Source: euro adhoc)
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Proposed acquisition expands MMK’s activities in virgin fiber-based cartonboard
and creates attractive development potential

Mergers - Acquisitions - Takeovers

Vienna - Mayr-Melnhof Group has agreed to acquire International Paper (Poland)
Holding sp. z.o.o. ("Kwidzyn") from International Paper for a debt and cash free
amount of around EUR 670 million and additionally assuming ca. EUR 33 million of
usufruct and operating lease liabilities according to IFRS treatment. The
acquisition of Kwidzyn forms part of MM's strategy to grow in high quality
virgin fiber based cartonboard with innovative, sustainable and cost effective
FBB grades. The proposed transaction will be immediately earnings accretive.

At its integrated pulp and paper site in Poland, Kwidzyn operates a pulp mill
with an annual capacity of around 400,000 t and four integrated cartonboard /
paper machines: The flagship is a FBB board machine with 260,000 t annual
capacity. In addition, Kwidzyn has recently entered the MF kraft paper segment
through the conversion of one of its paper machines to serve the growing demand
for flexible fiber-based packaging products. Production of this machine is
increasing up to an annual capacity of 75,000 t. Finally, Kwidzyn operates two
of the most attractive copy paper machines (UWF) in Europe with an annual total
capacity of 410,000 t. About 2,300 people are working at the mill. In 2020 it
generated an Adjusted EBITDA of ca. EUR 92 million on sales of ca. EUR 510
million.

The cash payment will be funded from committed bank credit lines and the
issuance of a Schuldschein. The transaction is subject to customary closing
conditions. Closing of the transaction is expected in Q3 2021.

Strategic Rationale

* Expand Mayr-Melnhof Group's competitive position versus the two market leaders
  in the growing European FBB market with innovation of sustainable products and
  a broader service offering
* Enter the attractive flexible fiber-based packaging segment
* Enter the Uncoated Fine Paper (UWF) segment via an established low cost
  producer
* Leverage the favourable cost position for further growth in FBB or other
  packaging grades
* Harvest synergy potential

Mayr-Melnhof Group CEO, Peter Oswald, comments: "The acquisition of Kwidzyn
perfectly complements our existing cartonboard business. It enables MMK to drive
innovation for more sustainable packaging solutions in the growing virgin fiber-
based cartonboard market and creates attractive new perspectives from the
integration of pulp and paper at a site in Europe with cost advantages. We have
great confidence in the highly qualified team of Kwidzyn to shape a promising
common future together."

Dial in details for an investor conference call today on February 12, 2021 at
10:00 a.m. CET and a presentation are available from our website http://
www.mayr-melnhof.com.

Further inquiry note:
For further information, please contact:
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

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

EAX0003    2021-02-12/06:35

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