Mayr-Melnhof Karton AG — M&A Activity 2021

Feb 12, 2021

Publication Date: 12.02.2021 06:30 EANS-Adhoc: Mayr-Melnhof Karton to acquire Kwidzyn (Poland) mill from International Paper

Disclosed inside information pursuant to article 17 Market Abuse Regulation (MAR) transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is responsible for the content of this announcement.

Proposed acquisition expands MMK's activities in virgin fiber-based cartonboard and creates attractive development potential

Mergers - Acquisitions - Takeovers 11.02.2021

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.

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 --------------------------------------------------------------------------------

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

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