Finnish firm Huhtamaki has signed an agreement to acquire India-based privately-owned flexible packaging firm, Positive Packaging, in a deal worth €247m ($336m).
Following the acquisition, Huhtamaki will merge Positive Packaging into its Flexible Packaging business, allowing it to improve quality and strengthen its position in the emerging markets.
Huhtamaki Oyj CEO Jukka Moisio said the acquisition enhances the company's position in India and provides it with 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," Moisio added.
Huhtamaki Flexible Packaging executive vice president Shashank Sinha said together with Positive Packaging, the company will become a leading flexible packaging provider in the fast-growing emerging markets.
"With the acquisition we expand our flexibles manufacturing into Middle East and double our sales in Africa with an unmatched footprint," Sinha added.
The transaction, which is subject to approval from competition authorities and other regulations, is expected to be closed in fall 2014.
Part of the Enpee Group, Positive Packaging develops plastic-based flexible packaging, which is used for a range of products from chocolate bars to cat food.
The company has six manufacturing facilities in India and three in the UAE, with total staff of 2,500 employees. Additionally, it has sales offices in seven countries including Africa.
However, Positive Packaging spokeswoman was quoted by Reuters as saying that the company's Nigeria unit is not part of the acquisition.
Image: Huhtamaki develops paper cups for McDonald's. Photo: courtesy of taesmileland / FreeDigitalPhotos.net.
