Paper manufacturer Mayr-Melnhof Group's (MM Group) MM Packaging has signed an agreement to acquire three sites of the Pan-European cardboard packaging company A&R Carton in Russia for €100m.
The move is expected to expand the company's presence in the region as well as improve customer relationships with the consolidation of the sites in its domestic divisions.
The three A&R Carton sites are located at St. Petersburg and Timashevsk in Southern Russia, as well as Augsburg in Germany.
MM Group CEO Wilhelm Hrmanseder said, "The core component of this acquisition lies in its high consolidation potential, which should allow for an attractive value creation."
Following the transaction, MM Packaging expects to generate revenues worth €122mn in 2013, and convert about 50,000 tons of carton board per annum.
