Tuesday, 8 July 2014

Finland’s Huhtamaki buys Positive Packaging for $336 million

Finnish packaging company Huhtamaki, known for making paper cups for McDonald’s , said on Tuesday it will buy Indian firm Positive Packaging for $336 million to increase its access to Indian and Middle Eastern markets.
The acquisition, according to a Huhtamaki spokeswoman , does not include Positive Packaging’s operations in Nigeria.
In a statement on it website, Huhtamaki said the acquisition furthers its forays into the growing markets in Africa and Middle East.
“I am extremely pleased to announce this acquisition,” says Jukka Moisio, CEO of Huhtamäki Oyj. “It further enhances our position in India and provides us with much improved access to the
fast growing markets of Africa and Middle East. Many of our global customers are investing heavily to grow in these markets, and now we are even better resourced to help them grow.
The statement did not, however, state if Positive Packaging’s Nigerian operations were part of the deal.
Listed on Bombay and Nigeria Stock Exchanges,  Positive Packaging has six plants in India, three in the United Arab Emirates and an operation in Nigeria as part of Enpee Group.
Positive Packaging supplies laminates, tubes, pouches and labels to Fast Moving Consumer Goods (FMCG), pharmaceutical and industrial product sectors. Its clientele include ITC, Parle, Cadbury, Britannia, Reckitt Benckiser, Bisleri, Diageo and Marico among others.
Huhtamaki said Positive Packaging had sales of 220 million euros ($300 million) last year and employs about 2,500 staff in India and the United Arab Emirates. The deal is expected to be finalised in the autumn, Huhtamaki said.
“This increases our market share and supply capacity in India,”she said. “We also get a significantly better footprint in Africa and the Middle East.”

BusinessDay

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