Huhtamäki entered into an agreement to acquire International Paper’s foodservice packaging operations in China. According to the announcement, the acquisition comprises of two manufacturing units located in Shanghai and Tianjin, employing altogether approximately 200 people.
The net sales of the business to be acquired was approximately EUR 19 million in 2016. The debt free purchase price is EUR 15 million. The business will become part of Huhtamaki’s Foodservice Europe-Asia-Oceania business segment. The transaction is expected to be finalized within 1-2 months, subject to completing applicable registration obligations with authorities in China.
The product range of the units to be acquired is similar to Huhtamaki’s current product range in China, including paper cups for hot and cold beverages, food containers as well as snack food and ice-cream containers.
Jukka Moisio, Huhtamäki’s CEO:
“I am very pleased to announce this acquisition. It strengthens our operations in China significantly, both geographically and from a capacity point of view, allowing us to serve our customers even better in the future.”
With the acquisition Huhtamaki expands its manufacturing footprint into the Eastern China region and strengthens its capacity and capability to serve customers operating in Northern China.
In 1Q2017 Huhtamaki increased Adjusted EBITDA by 11%.
The company is focused on manufacturing of foodservice packaging, flexible packaging and molded fiber packaging. It has 73 manufacturing units and 24 sales offices in 34 countries employing around 17,000 people worldwide. In 2016 our net sales totaled EUR 2.9 billion.