Huhtamaki buying company with plants in India and United Arab Emirates

By Jim Johnson
Senior Staff Reporter

Published: July 8, 2014 5:08 pm ET
Updated: July 8, 2014 5:11 pm ET

Image By: Huhtamäki Oyj Huhtamäki specializes in flexible packaging

Related to this story

Topics Packaging, Mergers & Acquisitions, Film & Sheet, Extrusion
Companies & Associations Huhtamaki: Huhtamäki Oyj

For Huhtamäki Oyj, the decision to buy flexible packaging maker Positive Packaging is all about going where its customers are heading.

A $336 million (247 million euro) deal to acquire Positive Packaging operations in India and the United Arab Emirates will bring nine manufacturing sites.

“It further enhances our position in India and provides us with much improved access to the fast growing markets of Africa and Middle East,” Huhtamäki CEO Jukka Moisio said in a statement. “Many of our global customers are investing heavily to grow in these markets, and now we are even better resourced to help them grow.”

Acquiring Positive Packaging’s operations in India and UAE will bring about 220 million euros ($300 million) in annual sales to a company that posted 2.3 billion euros ($3.13 billion) in sales last year.

Huhtamäki, already with 14,400 employees, adds another 2,500 workers through the Positive Packaging deal, the company said. Along with the nine manufacturing sites, Positive Packaging also brings sales offices in seven countries.

"With the acquisition we expand our flexibles manufacturing into Middle East and double our sales in Africa with an unmatched footprint," said Shashank Sinha, executive vice president of flexible packaging for Huhtamäki, said in a statement.

“Positive Packaging's expertise in high quality printing and cylinder making, as well as their strong focus on innovations are a perfect fit for Huhtamäki's growth strategy,” he said.

Making the deal for Positive Packaging is nothing new for Huhtamäki, which has transformed from a self-described “a multi-industry company” into a consumer packaging firm through nearly 200 acquisitions and divestitures since 1980, according to the company’s website.

Positive Packaging is being sold by the Enpee Industries plc, an international manufacturing conglomerate dating back to 1961. The company’s holdings also include Vista Film Packaging, which makes cast polypropylene films and barrier laminates.

While Huhtamäki is acquiring sites in India and UAE, Enpee said the RenewSys division of Positive Packaging in Bangalore, India, is not part of the deal. RenewSys makes ethylene vinyl acetate (EVA) encapsulant and backsheet for solar modules. Also not part of the deal is Positive Packaging’s operations and associated companies in Nigeria, Enpee Chairman Sanjay N. Kirpalani said in an announcement.

“The promoters of Positive Packaging are convinced that the takeover will help accelerate its growth and give its dedicated team greater opportunities to excel,” Kirpalani said in the announcement.

The debt-free purchase is expected to close during the fourth quarter of this year and is subject to regulatory approval.


Comments

Huhtamaki buying company with plants in India and United Arab Emirates

By Jim Johnson
Senior Staff Reporter

Published: July 8, 2014 5:08 pm ET
Updated: July 8, 2014 5:11 pm ET

Post Your Comments


Back to story


More stories

Image

Amcor buys Chinese flexible packaging plant

December 18, 2014 1:47 pm ET

Australian-based global packaging company Amcor Ltd. is buying a Chinese flexible packaging business for 211 million RMB (US$31.4 million).    More

Image

Soy-based foam improves window performance, sustainability

December 18, 2014 12:51 pm ET

Launched in April 2013, Madison, Wis.-based WFI Global LLC is making a name in the fenestration market with what it says is a distinct product...    More

Image

Indian auto parts maker set to buy assets in Germany, Mexico

December 18, 2014 10:35 am ET

Indian auto parts maker Samvardhana Motherson Gropup is buying the assets of insolvent German plastics car parts producer Scherer & Trier (S&T).    More

Image

Sweden's Indutrade buys Belgian packaging firm Verbeek

December 18, 2014 9:42 am ET

Sweden's Indutrade AB has purchased all the shares in Belgium's Verbeeck Packaging Group.    More

Image

Röchling buys two UK firms

December 18, 2014 9:24 am ET

Germany's Röchling Engineering Plastics SE & Co. KG has expanded its presence in the high-performance plastics market by acquiring two British firms &...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events