Huhtamaki has entered into an agreement to acquire Positive Packaging, a privately owned flexible packaging company with nine manufacturing facilities in India and the United Arab Emirates as well as significant business in Africa and other export markets. With the acquisition Huhtamaki continues to implement its strategy of quality growth and strengthens its position in the fast-growing emerging markets."I am extremely pleased to announce this acquisition," says Jukka Moisio, CEO of Huhtamäki Oyj. "It further enhances our position in India and provides us with much improved access to the fast growing markets of Africa and Middle East. Many of our global customers are investing heavily to grow in these markets, and now we are even better resourced to help them grow."
The annual net sales of the business to be acquired are approximately EUR 220 million and it employs approximately 2,500 people in India and UAE as well as in the sales offices in seven countries. Huhtamaki will acquire Positive Packaging for a debt free purchase price of EUR 247 million (USD 336 million). The business will become part of Huhtamaki's Flexible Packaging business segment.
"Together with Positive Packaging Huhtamaki will become a leading flexible packaging provider in the fast-growing emerging markets," says Shashank Sinha, Executive Vice President, Flexible Packaging. "With the acquisition we expand our flexibles manufacturing into Middle East and double our sales in Africa with an unmatched footprint," he continues. "In addition, Positive Packaging's expertise in high quality printing and cylinder making, as well as their strong focus on innovations are a perfect fit for Huhtamaki's growth strategy."
The transaction is subject to the approval of competition authorities and other regulators and it is expected to be finalized in the fall.
