Huhtamaki has completed the acquisition of the majority of the business of Everest Flexibles, a privately-owned flexible packaging manufacturer in South Africa.
The annual net sales of the acquired business is approximately €40mn and it employs altogether approximately 460 people.
The business was acquired for an enterprise value of €58mn. The deal was paid partly in cash and partly in shares, as the sellers of Everest entered into a joint venture also with Huhtamaki’s Flexible Packaging, Foodservice and Fiber Packaging operations in South Africa.
As a result, the sellers of Everest now own 30% of all Huhtamaki’s activities in South Africa. The joint venture structure allows Huhtamaki to improve its B-BBEE (Broad-based Black Economic Empowerment) rating and subsequently competitiveness in South Africa. The business will be reported as part of the Flexible Packaging business segment as of December 1, 2019.
Huhtamaki is a global specialist in packaging for food and drink. With a network of 80 manufacturing units and additional 24 sales only offices in altogether 35 countries, the company well placed to support its customers’ growth wherever they operate.
Mastering three distinctive packaging technologies, approximately 18,800 employees develop and make packaging that helps great products reach more people, more easily.
In 2018, Huhtamaki’s net sales totalled €3.1bn. The Group has its head office in Espoo, Finland and the parent company Huhtamäki Oyj is listed on Nasdaq Helsinki Ltd.