Huhtamaki to Acquire International Paper’s Foodservice Packaging Operations in China

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.
 
“I am very pleased to announce this acquisition,” said Jukka Moisio, CEO of Huhtamäki Oyj. “It strengthens our operations in China significantly, both geographically and from a capacity point of view, allowing us to serve our customers even better in the future.”
 
The acquisition comprises of two 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 was approximately €19 million in 2016. The debt free purchase price is €15 million.
 
The business will become part of Huhtamaki’s Foodservice Europe-Asia-Oceania business segment. The transaction is expected to be finalized within one to two months, subject to completing applicable registration obligations with authorities in China.