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Finland’s Huhtamaki buys 51% stake in packaging firm Valpack

By TEAM VCC

  • 29 Jul 2016
Finland’s Huhtamaki buys 51% stake in packaging firm Valpack

Finnish packaging company Huhtamaki Oyj has acquired a 51% stake in Valpack Solutions Pvt. Ltd, a privately held paper cup manufacturer based in Mumbai, for a debt-free price of about €2 million ($2.2 million).

The acquisition helps Huhtamaki enter the growing food service packaging market in India, where it already has many customers, the company said in a statement.

“Many of our global and regional customers have plans to grow in India. With Valpack, a well-established company with high manufacturing standards, we're able to serve them locally,” said Eric Le Lay, executive vice president for Huhtamaki’s food service business in Europe, Asia and Oceania.

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Lay said the company plans to grow the business by investing in additional capacity and introducing an extended offering of food service packaging in India.

Valpack makes a range of paper cups and other food service packaging products for both domestic and international clients. Its annualised net sales are about €4 million and it employs about 100 people in its manufacturing unit in Mumbai, Huhtamaki said.

Valpack will become part of Huhtamaki's food service Europe-Asia-Oceania business segment.

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This is Huhtamaki's second acquisition in India. In 2014, it had acquired Mumbai-based Positive Packaging, a maker of flexible packaging products with nine manufacturing facilities in India and the United Arab Emirates, for €247 million ($336 million then).

Huhtamaki Group has 72 factories and 23 sales offices in 34 countries. It employs about 17,000 employees and its net sales totaled €2.7 billion in 2015. The company makes packaging products for food and beverages sectors as well as non-food sectors such as consumer products, electronics and healthcare.

Trilegal advised Huhtamaki on the acquisition of Valpack.

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