Summary *Strong performance and cash flows despite operating in a generally disruptive demand environment *Most of our businesses were at or above expectations for the quarter due to commercial and operational excellence, with particular strength in the flexible packaging and rigid paper container businesses, offset by weakness in the metal packaging and industrial North American region businesses *Inventory management and destocking trends among our customers as well as inflationary pricing pressures led to lower and increasingly uncertain demand which impacted operational efficiency in our metal and industrials businesses *Remained disciplined in managing working capital to generate $349 million of operating cash flow in the first six months of 2023
Mayr-Melnhof Group (MM) has entered into an agreement to buy Essentra Packaging (100% equity interest in ESNT Packaging & Securing Solutions Limited (UK) and its affiliates and 100% equity interest in Essentra Packaging US Inc (US)) from Essentra plc (UK) for GBP 312 million – currently around EUR 365 million – (“cash and debt free”).
The acquisition of Essentra Packaging serves to implement MM Packaging’s strategy to grow in profitable and resilient segments such as pharma secondary packaging and strengthens its position in the European market for pharma folding boxes and leaflets. Additionally, this acquisition expands MM’s presence in the US market with a significant position in the East Coast pharma hub.
Essentra Packaging reported sales of around £370m for 2021 – currently c.€430m. The company comprises 21 production sites in 10 countries in Europe and North America, ideally complementing MM Packaging’s current position in Scandinavia through the recently acquired Eson Pac and the existing business in France. Essentra Packaging serves over 800 customers worldwide, including 19 of the top 20 pharmaceutical companies, and employs over 3,500 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 more innovations for sustainable packaging solutions in the pharmaceutical sector. We have great confidence in creating a promising future together with the Essentra Packaging team.”
more at: https://www.mm.group/newsroom/presseaussendungen/akquisition-von-essentra-packaging-positioniert-mm-als-einen-weltweit-fuehrenden-hersteller-von-pharmaverpackungen/