Finnish packaging manufacturer Huhtamaki has agreed to acquire a majority stake in South Africa-based flexible packaging manufacturer Everest Flexibles, for approximately €58 million.
Durban-headquartered Everest Flexibles registered annual net sales of €40 million last year, and currently employs around 420 people.
Huhtamaki claims that the acquisition will significantly enhance its flexible packaging manufacturing operations in the country. Everest’s manufacturing unit and an adjacent cylinder making facility are located near a major seaport and road network, adding a strategically-located facility to the company’s logistics network.
The business will be merged with Huhtamaki’s current flexible packaging sales organisation in South Africa, and it will become part of the company’s Flexible Packaging business segment.
Huhtamaki will acquire 70% of the Everest as a result of the agreement, while the sellers of Everest’s shares have agreed to enter into a joint venture with Huhtamaki’s Foodservice and Fibre Packaging operations in South Africa.
As a result of this agreement, the sellers of Everest will own 30% of Huhtamaki’s activities in South Africa.
Olli Koponen executive vice-president, of Huhtamaki’s Flexible Packaging division 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.”
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