The purchase price corresponds to a fairly good EV/EBITDA multiple of 9x. Of course, MM’s packaging business is an asset-light converting operation, making it a better peer for Huhtamäki than for forest industry companies at this high level. Naturally, MM will continue operating its cartonboard business, and its balance sheet will strengthen considerably, even though the company also intends to distribute around half a billion in extra dividends from the deal’s proceeds. As such, MM would still have room for investments on the cartonboard side, but considering the current state of the board market, I wouldn’t expect particularly aggressive moves in the near future despite the increased financial flexibility.
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