Huhtamaki has entered into an agreement to acquire International Paper's foodservice packaging operations in China. 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. The debt free purchase price is Euro 15 million, as the company says in the press release received by Lesprom Network.
The acquisition comprises of 2 manufacturing units located in Shanghai and Tianjin, employing altogether approximately 200 employees. 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. The net sales of the business to be acquired were approximately Euro 19 million in 2016.
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.
Huhtamaki is a global specialist in packaging for food and drink.
