Huhtamaki acquires South African flexible packaging company Everest Flexibles

The deal has an enterprise value of EUR 58 million

477
Huhtamaki PPL acquires Everest Flexibles
Huhtamaki PPL acquires Everest Flexibles

Global flexible packaging major Huhtamaki has entered into an agreement to acquire the majority of Everest Flexibles (Pty) Limited, a privately owned flexible packaging manufacturer in South Africa. The product range and customer portfolio of Everest are complementary to those of Huhtamaki.

“With Everest we will be able to serve our current and new customers in South Africa and the surrounding region even better, offering them a full range of flexible packaging solutions with faster lead times,” says Olli Koponen, executive vice president at Huhtamaki’s Flexible Packaging division. “We will have two flexible packaging manufacturing units in Africa, Everest and the recently opened facility in Egypt. With these two sites we will be in an excellent position to tap into the growth opportunities of this exciting region.”

Everest’s manufacturing unit and an adjacent cylinder making facility are strategically located in Durban, close to a seaport and major freeways. The annual net sales of the business to be acquired is approximately EUR 40 million and it employs altogether approximately 420 people. The business will be merged with Huhtamaki’s current flexible packaging sales organization in South Africa and it will become part of the flexible packaging business segment.

The business will be acquired for an enterprise value of EUR 58 million. The consideration for 70% ownership of Everest will be paid partly in cash and partly in shares, as the sellers of Everest will enter into a joint venture also with Huhtamaki’s Foodservice and Fiber Packaging operations in South Africa. The transaction is expected to be finalized within a few months, subject to the approval of competition authorities.

The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.

A multi-channel B2B publication and digital platform such as Packaging South Asia.is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.

As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.

The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.

Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.

In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what you need. Speak and write to our editorial and advertising teams! For advertisement ads1@ippgroup.in , for editorial info@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here