Van Genechten Packaging International (VGPI) will purchase the packaging unit having its forte in the microflute packaging from Stora Enso in Komarom, Hungary.
The manufacturing unit, which is entrusted with not only conception but also the production of microflute packaging, posted sales worth €14m and employs around 100 people.
The acquisition is likely to be closed in a month.
VGPI managing director Frederic de Somer said: "The acquisition widens our geographical footprint in Central Europe, with an excellent location just at the north of Budapest.
"It is also complementary to our existing Microflute operations in Belgium, allowing us to become a leading player in this growing segment. The highly skilled people and state of the art equipment enables the Hungarian plant (built in 2008) to offer complex Microflute solutions to its customers.
"Our strong presence in Western and Central Europe will be to the benefit of our customers, both in terms of supply chain and in time to market."
Based out of Luxembourg, VGPI has 11 manufacturing units in eight countries, catering to sectors involved in printed folding cartons, microflute and other packaging services.
Posting a turnover worth €295m a year, the group makes conversion of over 200,000 tons of cardboard annually and provides employment to 1,600 people.
VGPI CEO Lorenzo Delorenzi said: "By this acquisition we follow the demand of our multinational and regional customers who are strongly growing in Central and Eastern Europe, offering them our trusted high quality standards and our rewarded innovation capabilities.
"This represents the next step of VGPI’s long term growth strategy focusing on chosen markets and driving business with its preferred partners."
Image: VGPI caters to sectors involved in printed folding cartons, microflute and other packaging services. Photo: courtesy of Salvatore Vuono/Freedigitalphotos.net.