The privately-owned flexible packaging manufacturer will ensure that Huhtamaki expands its manufacturing footprint into South Africa, strengthening its emerging market position.
The product range and customer portfolio of Everest are complementary to those of Huhtamaki.
Everest’s manufacturing unit and an adjacent cylinder making facility are strategically located in Durban close to a seaport and major freeways. The annual net sales of the business to be acquired is approximately €40m and it employs altogether approximately 420 people. The business will be merged with Huhtamaki’s current flexible packaging sales organization in South Africa and it will become part of the Flexible Packaging business segment.
The sellers of Everest will enter into a joint venture also with Huhtamaki’s Foodservice and Fiber Packaging operations in South Africa, owning 30% of all Huhtamaki’s activities in South Africa.
“With Everest we will be able to serve our current and new customers in South Africa and the surrounding region even better, offering them a full range of flexible packaging solutions with faster lead times,” said Olli Koponen, executive vice president, flexible packaging. “We will have two flexible packaging manufacturing units in Africa, Everest and the recently opened facility in Egypt. With these two sites we will be in an excellent position to tap into the growth opportunities of this exciting region.”
Author: PackagingNews Africa
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