Finland-based packaging solutions provider Huhtamaki has purchased a 65% stake in Australian foodservice packaging distributor Tailored Packaging for €35m.
The acquisition is a part of Huhtamaki’s effort to gain access to a national network of distribution centers across Australia.
Tailored Packaging has sales offices and distribution centers in New South Whales, Victoria, Queensland, Western Australia and South Australia.
Employing approximately 130 people, Tailored Packaging is claimed to be one of the largest importers and distributors of foodservice packaging in Australia.
The company imports and distributes bags, bin liners, foodservice wraps, food prepackaging, containers, cups, tableware, and hygiene and industrial products to its clients.
Huhtamaki will acquire a 65% stake in the company as a result of the agreement.
With the completion of the deal, Tailored Packaging will operate as a subsidiary in Huhtamaki’s Foodservice Europe-Asia-Oceania division.
Huhtamaki said as the majority shareholder it will consolidate the joint venture company as a subsidiary in the Group’s financial reporting.
Earlier this year, Huhtamaki has collaborated with Smith Anderson Group to create a joint venture (JV) for manufacturing paper bags in Eastern Europe.
Expected to begin operations in the first quarter of this year, the JV will produce paper bags at Huhtamaki’s facility in Czeladz, Poland.
Huhtamaki has also agreed to acquire India-based Ajanta Packaging to expand its operations in the region.
Huhtamaki is paying €13m to acquire the manufacturer of pressure sensitive (PS) labels. It will include the acquired business in its flexible packaging business segment.
Based in Espoo, Huhtamaki provides packaging solutions to the customers in the food and drink sectors.
The company operates 76 manufacturing facilities and additional 24 sales only offices in 34 countries.