The acquisition of Elif will allow Huhtamaki to boost its position as a flexible packaging company in emerging markets and enhance its existing flexible packaging business
Huhtamaki has agreed to acquire flexible packaging supplier Elif. (Credit: Capri23auto from Pixabay)
Packaging solutions provider Huhtamaki has agreed to acquire sustainable flexible packaging supplier Elif Holding for €412m ($483m).
To meet financing requirements for the acquisition, Huhtamäki has entered into a bridge financing facility of $500m with Citi, which also served as an advisor in the transaction.
With operations in Turkey and Egypt, Elif provides sustainable flexible packaging solutions to global FMCG brand owners, including food, beverage, pet, home and personal care.
The acquisition of Elif will allow Huhtamaki to boost its position as a flexible packaging company in emerging markets and enhance its existing flexible packaging business in key consumer product categories.
It will also help Huhtamaki in reaching its goal to have 100% of its products designed to be recyclable, compostable or reusable by 2030.
Elif will also allow Huhtamaki to expand its technology capabilities and product range to better serve its customers. The acquired business will become part of Huhtamaki’s flexible packaging business segment.
Elif CEO Selçuk Yarangűmelioğlu said: “Under new ownership, we will continue to deliver sustainable solutions to our customer base globally, enhance our focus on fast-growing emerging markets, realize synergies through scale and expand our capabilities.”
Established in 1972, Elif is a long-term partner for major global consumer brand owners in Europe, Middle East and Africa.
The company uses both post-industrial and post-consumer recycled polymers as raw materials, as well as an optimized system of collecting and utilising production scrap from both its own and customer locations.
Huhtamaki stated that more than 90% of Elif’s current product portfolio is recyclable and its product line also consists of compostable films.
Elif reported net sales of €163m in 2020 and employs up to 1,500 people at its two manufacturing locations in Istanbul and Cairo.
Huhtamaki president and CEO Charles Héaulmé said: “We are impressed by Elif’s focus on its customers with decades of strategic partnerships with blue-chip multinational companies who are leaders in their field and Elif’s strong and capable leadership team.
“Our 2030 growth strategy is particularly focused on sustainability and competitiveness, which Elif strongly supports.”
The deal, which is subject to the approval of competition authorities in Turkey, is expected to be completed after regulatory approval.