Finland-based packaging supplier Huhtamaki has announced plans to sell its films business segment, in order to concentrate more on food packaging.
The company's latest decision comes on the heels of evaluating options pertaining to its films business, which reported an increase in net sales in 2014 with an improvement in financial performance.
Huhtamaki's films segment manufactures and sells films and provides services to global markets through its manufacturing units that are located in Europe, Asia, North America and South America.
Said to be used for technical applications in the label, adhesive tape, hygiene and health care industries, the films can also be used in building and construction, automotive, packaging and graphic arts industries.
In 2013, the segment, which employs around 924 employees, reported net sales of about €187m.
Recently, the company has signed an agreement to acquire privately owned flexible packaging company Positive Packaging, for around €247m ($336m).
The company has nine manufacturing facilities in India and the United Arab Emirates (UAE), along with prominent business in Africa and other export markets.
At the time of signing agreement, Huhtamaki Oyj CEO Jukka Moisio said the acquisition will improve firm's position in India and offers 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.
Positive Packaging, which has around 2,500 people in India and UAE, has annual net sales of about €220m.
Subject to the approval of competition authorities, the transaction is expected to be finalized in the fall.
