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

Adidas phasing out plastic bag use

April 20, 2015 11:50 am ET

Sporting goods company Adidas AG is phasing out the use of plastic bags in its own retail stores as part of a larger effort raise awareness about...    More

Image

IPL invests in new molding technology at New Brunswick plant

April 20, 2015 3:46 pm ET

IPL Inc. has invested C$2.04 million (US$1.63 million) to produce lighter weight, injection molded containers at its Edmundston, New Brunswick,...    More

Image

Sidel, BMS reach agreement on spindle patent case

April 20, 2015 1:24 pm ET

Sidel Group and Blow Mold Services LLC have reached an agreement in Sidel's patent infringement lawsuit against BMS involving the spindle chain on a...    More

Image

Sonoco sees first quarter sales climb in consumer packaging

April 20, 2015 1:07 pm ET

Sonoco Products Co. saw earnings jump on higher overall sales during the first quarter, including stronger results in the company's consumer...    More

Image

Greif special committee to study 'transformation initiative'

April 20, 2015 12:22 pm ET

Greif Inc., an industrial packaging company that includes plastic containers, is forming a special board committee to help with the company's transfor...    More

Market Reports

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

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

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events