Finnish disposable packaging manufacturer Huhtamki has agreed to acquire Fiomo, a multi-layer flexible packaging foils producer in Czech Republic.
The transaction, which is expected to be finalized in early 2016, is valued at around 28m.
Fiomo employs close to 120 people in its manufacturing unit in the Prague area where it produces flexible packaging foils and labels. It generated nearly €21m in annual net sales last year.
Under the agreed terms, Fiomo will become part of Huhtamaki's flexible packaging business segment.
Huhtamaki's flexible packaging unit serves customers around the globe from its bases in Europe, Oceania, Asia, North America and South America.
Huhtamki flexible packaging executive vice president Olli Koponen said: "I am pleased to announce this addition in our flexible packaging manufacturing network.
"European flexible packaging market is experiencing a positive momentum, with increasing versatility in customers' needs. Fiomo's manufacturing capabilities complement our offering and ensure better resourcing and faster response when serving our customers across Europe."
With the addition of Fiomo, Huhtamaki will expand flexible packaging manufacturing footprint to Eastern Europe.
Huhtamaki will also be able to offer off-set printing capabilities for smaller production runs for its customers in Europe.
Fiomo claims to employ dry and wet offset technology in combination with small, medium and large presses to achieve maximum flexibility and optimization of production.
With around 16,700 employees, Huhtamaki operates a network of 69 manufacturing units and 23 sales offices in 34 countries.
