KPS Buys MM Packaging in €2.4 Billion Deal, Takes 70% Control

KPS Capital Partners has signed an agreement to acquire MM Packaging from Mayr-Melnhof Karton (MM Group) in a deal valuing the business at approximately €2.4 billion. MM Group will retain a 30% ownership interest, while KPS takes majority ownership and control of what will become a standalone company.

The deal ranks among the most significant moves this year in the global consumer packaging market. And KPS is paying for scale: MM Packaging runs more than 50 manufacturing facilities across 19 countries and employs roughly 8,500 people.

What does MM Packaging actually make?

Headquartered in Vienna, Austria, MM Packaging manufactures folding cartons, labels, leaflets and other packaging products used by consumer and pharmaceutical companies. Its customers span food and beverage, healthcare, beauty, personal care and household products, and include many established multinational companies.

The company holds two leading positions. It is described as the world's largest producer of secondary pharmaceutical packaging and a leading European manufacturer of folding cartons for food products. Key customer relationships average more than 20 years in duration — a retention figure that matters in a business built on regulatory compliance, product information and reliable manufacturing rather than one-off contracts.

Food and consumer packaging likewise demands tight coordination among manufacturers, brand owners and distribution partners. KPS believes MM Packaging's international manufacturing network and long-standing customer relationships provide room for continued growth.

Why is KPS the buyer here?

KPS has a track record in exactly this sector. The firm has invested in industrial businesses across paper, board and metal packaging, with an approach centered on operational improvements, manufacturing efficiency and strengthening the long-term competitive position of portfolio companies. It intends to apply that playbook to MM Packaging's global operations.

Michael Psaros, Co-Founder and Co-Managing Partner of KPS, framed the deal in confident terms: "MM Packaging is an industry-leading business, and we are excited to take it to the next level as an independent company. We appreciate the trust MM Group is placing in KPS and look forward to our partnership. KPS has had extraordinary success investing in the packaging sector across paper, board and metal substrates. We will leverage our deep industry experience, financial resources, commitment to manufacturing excellence and global presence to drive MM Packaging's growth."

The numbers behind that confidence are substantial. KPS managed approximately $19.1 billion in assets through its affiliated investment funds as of June 30, 2026. Its portfolio companies collectively generated about $26.1 billion in annual revenue, operated 277 manufacturing facilities across 25 countries, and employed approximately 62,000 people directly and through joint ventures as of the same date.

What does MM Group get out of it?

The retained 30% stake lets MM Group participate in potential future value creation while restructuring its portfolio. MM Group operates in fiber-based consumer packaging and related products; the sale changes the shape of its business while it keeps an economic interest in the unit it built.

Peter Oswald, CEO of MM Group, said the logic works for both sides: "This transaction will allow MM Packaging to accelerate growth under the leadership of KPS, who has proven their expertise in managing large, global manufacturing and industrial businesses. Our retained shareholding of 30% will enable MM Group to participate in its future value creation under KPS ownership. We are looking forward to our partnership with KPS."

What happens next?

The transaction requires corporate and regulatory approvals plus customary closing conditions. The French portion of MM Packaging's operations is also subject to consultations with employee representatives.

Once complete, MM Packaging keeps its existing name and operates independently, backed by KPS's manufacturing and operational investment platform. On the advisory side, Paul, Weiss and Schönherr provided legal counsel to KPS, while Barclays and Citi served as financial advisors.

The deal signals where KPS sees value: industrial businesses with operational development, international expansion and long-term value creation still to run for.