Everest Flexibles is a privately-owned flexible packaging manufacturer in South Africa
Image: Huhtamaki has completed the acquisition of South Africa’s Everest Flexibles. Photo: courtesy of Adam Radosavljevic from Pixabay.
Finnish packaging solutions provider Huhtamaki has completed the acquisition of South African company Everest Flexibles for an enterprise value of €58m ($64.5m).
With around 460 employees, Everest is a privately-owned company that provides flexible packaging solutions to its customers.
Everest’s manufacturing unit and an adjacent cylinder making facility are strategically situated in Durban, near to a seaport and major freeways. The annual net sales of Everest are around €40m ($44.5m).
Everest Flexibles merges with Huhtamaki’s current flexible packaging sales organisation in South Africa
The acquired business has been merged with Huhtamaki’s current flexible packaging sales organisation in South Africa and operates under the flexible packaging business segment.
The sellers of Everest entered into a joint venture with Huhtamaki’s South African flexible packaging, foodservice and fibre packaging operations.
As a result, the transaction amount was paid partly in cash and partly in shares and enabled Everest sellers to own 30% of all Huhtamaki’s activities in South Africa
The joint venture structure helps the company to boost its Broad-based Black Economic Empowerment (B-BBEE) rating and subsequently competitiveness in South Africa, said Huhtamaki.
Huhtamaki, a provider of packaging solutions to the food and drink customers, has 79 manufacturing units and an additional 24 sales units in 35 countries.
In October, Huhtamaki agreed to acquire India-based flexible packaging firm Mohan Mutha Polytech Private Limited (MMPPL) for around €10m (11.12m).
Based in the Sri City of Andhra Pradesh, MMPPL is a privately-owned flexible packaging manufacturer that has around 160 employees.
The acquisition of MMPPL will enable Huhtamaki to enhance its growth in India by improving its capability to serve the customers in South India.
During the same month, Huhtamaki commissioned the new fibre packaging line at its facility in Invanteevka, Russia.
The new line forms part of the company’s €7m investment plans announced in November 2018 to meet the needs of foodservice packaging and egg packaging in Russia and the neighbouring countries of Belarus, Kazakhstan and Nordic markets.