Finnish packaging company Huhtamaki has entered into an agreement to acquire Mumbai-based Positive Packaging, a privately owned flexible packaging company with nine manufacturing facilities in India and the United Arab Emirates as well as significant business in Africa and other export markets.
Huhtamaki will acquire Positive Packaging for a debt free purchase price of €247 million ($336 million). The business will become part of Huhtamaki’s Flexible Packaging business segment.
The annual net sales of the business to be acquired are approximately €220 million (Rs 1,800 crore) and it employs approximately 2,500 people in India and UAE as well as in the sales offices in seven countries.
Out of this around Rs 1,000 crore is generated from the Indian unit, which is being acquired by a local public listed arm of Huhtamaki. In a separate disclosure, Huhtamaki PPL Ltd (formerly The Paper Products Ltd) said it is acquiring Positive Packaging Industries Ltd, India, for an enterprise value of Rs 818 crore.
To finance the acquisition, the Finnish parent plans to subscribe to fresh shares of Huhtamaki PPL worth up to Rs 134 crore. This may push up its holding from 63.8 per cent to 67.8 per cent.
In addition Huhtamaki PPL proposes to raise up to Rs 820 crore through private placement of non convertible debentures.
Jukka Moisio, CEO of Huhtamäki Oyj, said, “It (the acquisition) further enhances our position in India and provides us with much improved access to the fast growing markets of Africa and Middle East. Many of our global customers are investing heavily to grow in these markets, and now we are even better resourced to help them grow.”
“Together with Positive Packaging, Huhtamaki will become a leading flexible packaging provider in the fast-growing emerging markets,” says Shashank Sinha, executive vice president, Flexible Packaging.
The transaction is subject to the approval of competition authorities and other regulators and it is expected to be finalised in the next one quarter.
Positive Packaging is engaged in manufacturing packaging material with products like multi layer laminated, printed and metallised films, polyester film, aluminium foil, rotogravure-printing cylinders and laser-engraved printing cylinders, metallised films and cast poly propylene films. It caters to FMCG, food and beverage, pharmaceuticals and agricultural industries.
It is part of the Enpee Group, an international conglomerate with over 50 years of business experience. Founded in Nigeria in 1961, the Enpee Group has diversified business. The flexible packaging business with manufacturing facilities in India, Nigeria & UAE and offices in Egypt, Ghana, Kenya, South Africa, the UK and the US drive around half of the group’s turnover.
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