Finland-based packaging company Huhtamaki will be selling its films business to German private equity company Deutsche Beteiligungs for $175m (€141m).
Huhtamaki is known for supplying paper cups to McDonald's.
The company stated that it decided to sell its film division as it was increasing its focus on food packaging.
Its films segment primarily manufactures and sells films that are used for technical applications in the label, adhesive tape, hygiene and health care industries along with building and construction, automotive, packaging and graphic arts industries. The segment delivers its products to global markets like Europe, Asia, North America and South America.
Huhtamaki said that it expects to book a small capital gain as well as a reduction in goodwill of about €45m upon closing the deal.
Huhtakami CEO Jukka Moisio said: "We are very pleased to announce the divestment of our Films segment. We feel that DBAG is a good and committed owner for the Films business and has good resources for growing and developing the business further in the future.
"The segment's net sales have grown well in 2014 and its financial performance has improved markedly. I would like to take the opportunity to congratulate the management of the segment for a job well done. The future owner will continue to benefit from this good development. From Huhtamaki Group's point of view, this turns a new page in our story, with a further growing focus on food packaging."
The company said that the majority of the business will be held by DBAG Fund VI and its management, while Deutsche Beteiligungs will hold 17%.
Huhtamaki had also announced in July its decision to buy India-based Positive Packaging for €247m to increase its access to Indian and Middle Eastern markets.
