AF&PA Releases March 2025 Packaging Papers Monthly Report

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. 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.

Following successful commercial consumer testing in 2022, Tetra Pak and Lactogal have now launched an aseptic beverage carton featuring a paper-based barrier. This is part of a large-scale technology validation, involving around 25 million packages and currently ongoing in Portugal. Made of approximately 80% paperboard, the package increases the renewable content to 90%, reduces its carbon footprint by one third (33%1) and has been certified as Carbon Neutral by the Carbon Trust™.2 Greenhouse gas emissions, food waste and plastic littering are cited as the top three environmental sustainability concerns facing food and beverage (F&B) businesses today, and this is expected to remain the case over the next five years.3 Packaging solutions like these, that expand the amount of paper and lower the carbon footprint, while ensuring food safety, can help the industry overcome these challenges.

Further to the announcement by Smurfit Kappa Group plc, International Paper Company confirms that it has submitted a proposal to acquire the entire issued and to be issued share capital of Smurfit Kappa. Under the terms of the Proposal, Smurfit Kappa shareholders would be entitled to receive €22.00 in cash and 0.3028 new International Paper shares of common stock for each Smurfit Kappa ordinary share held by them. In aggregate, the Proposal values Smurfit Kappa's current issued share capital at approximately €8.6 billion and would provide Smurfit Kappa shareholders with a shareholding of approximately 15 per cent. in International Paper post-completion (calculated by reference to the number of International Paper shares of common stock in issue as at 5 March 2018). Click Read More below for additional information.