©Jiangsu Hihio-Art Packaging
Huhtamaki has agreed to acquire Jiangsu Hihio-Art Packaging, a manufacturer of paper bags, wraps and folding carton packaging in China, in a €27 million debt-free transaction.
Founded in 2004, Jiangsu Hihio-Art Packaging serves international quick-service restaurants, bakeries and patisseries, cafés, and most recently supermarkets with its range of products such as baking paper moulds, paper bags, sandwich boxes, pastry boxes and disposable trays.
The company currently employs approximately 200 people in its manufacturing unit in Jiangsu, all of whom will be offered the opportunity to work for Huhtamaki following completion of the deal. In 2020, Jiangsu Hihio-Art Packaging recorded annual net sales of €20 million.
With the acquisition, Huhtamaki aims to strengthen its leading position as a foodservice packaging provider in Asia and expand its portfolio in China to better serve its existing and new customers in the market.
Earlier this year, Huhtamaki announced it was investing €10 million to transfer its Malaysia manufacturing base from Penang to Port Klang, in order to better serve its customers in Southeast Asia.
Upon completion, Jiangsu Hihio-Art Packaging will fall under Huhtamaki’s Foodservice Europe-Asia-Oceania reporting segment.
Following the transaction, Huhtamaki will have four manufacturing units in China – Guangzhou, Shanghai, Tianjin and Xuzhou.
“I am excited with the opportunities that this acquisition represents for our core business in China. Urbanisation, middle class expansion and innovation into more sustainable packaging solutions drive growth across Asia,” said Eric Le Lay, president for Huhtamaki’s Fiber Foodservice EAO business segment.
“The acquisition of Jiangsu Hihio-Art Packaging extends our product portfolio and access to new channels. This enables us to accelerate growth in China in line with our strategy.”
The deal is expected to be finalised by the end of the third quarter 2021, following customary closing conditions.
© FoodBev Media Ltd 2021
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