Green Bay Packaging Inc. announced the acquisition of Wisconsin Packaging Corp., a corrugated sheet plant in Fort Atkinson, WI. Wisconsin Packaging Corp. was founded in 1986 and will operate as part of Green Bay Packaging Inc. The acquisition is effective May 31, 2018. Wisconsin Packaging Corp. specializes in the design and manufacture of corrugated packaging and retail displays for clients throughout the United States. “Wisconsin Packaging is proud to become a member of Green Bay Packaging. Our family has grown our business in Fort Atkinson, our goal always being to provide for the everchanging needs of our customers. Click Read More below for additional information.
-Significant increase in sales and EBITDA following acquisition of the Tann-Group
-High capacity utilization in both divisions
-Visibility of demand is shortening
The Group’s consolidated sales increased by EUR 50.8 million or 8.6 % to EUR 642.9 million (1Q 2018: EUR 592.1 million), the EBITDA by 8.7 % to EUR 90.9 million (1Q 2018: EUR 83.6 million).
One-off acquisition effects from the initial consolidation of the Tann-Group were reported in the amount of around EUR -7 million due to recognition of order backlog and inventory measurement. Therefore, operating profit at EUR 57.2 million was at previous year’s level (1Q 2018: EUR 57.1 million), resulting in an operating margin of 8.9 % (1Q 2018: 9.6 %).
In the first quarter of 2019, the Mayr-Melnhof Group was able to maintain its position well in a market environment that was stable but intensely competitive due to a lack of momentum. The income statement and balance sheet are affected by the initial consolidation of the Tann-Group. Sales as well as profit for the period exceeded the comparative value of the previous year. Both divisions reported overall high capacity utilization. While MM Packaging achieved a slight increase in result, MM Karton again reached the high level of the previous year with a robust price and volume development.
The substantial growth in sales and EBITDA largely results from the acquisition. Its inclusion into the Group and the MM Packaging division took effect as of January 15, 2019, under consideration of one-off effects relating to the initial consolidation from which no further profit impact is expected for the remaining financial year. Nevertheless, the EBITDA increased significantly.