Everest Flexibles will be merged with Huhtamaki’s current flexible packaging sales organisation in South Africa
Finland-based packaging solutions provider Huhtamaki has agreed to acquire South Africa-based flexible packaging manufacturer Everest Flexibles for around €58m (£51.6m).
The acquisition of Everest Flexibles will help Huhtamaki to expand its flexible packaging manufacturing operations in South Africa.
The consideration for 70% stake of Everest will be paid partly in cash and partly in shares, as the sellers of Everest will establish a joint venture (JV) with Huhtamaki’s foodservice and fibre packaging operations in South Africa.
With nearly 420 staff, Everest Flexibles has annual net sales of about £35m
The product range and customer portfolio of Everest are said to be in line with those of Huhtamaki.
Everest’s manufacturing unit and an adjacent cylinder making facility are strategically situated in Durban near a seaport and major freeways. With around 420 employees, Everest’s annual net sales are about €40m (£35.5m).
Huhtamaki will include Everest in its current flexible packaging sales organisation in South Africa and will operate under the flexible packaging business segment.
Subject to the approval of competition authorities, the deal is expected to be completed within a few months.
Huhtamaki flexible packaging executive vice president Olli Koponen said: “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.
“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,”
Located in the town of Antrim, near Belfast, the new facility initially operates as a dedicated paper straw manufacturing site.
Huhtamaki, which is a global specialist in packaging for food and drink, has a network of 79 manufacturing units and 24 sales only offices in 35 countries.