Huhtamaki to sell the majority of its European rigid plastic consumer goods operations

Huhtamaki has agreed to sell the majority of its European rigid plastic consumer goods operations to Island Lux S.à r.l. & Partners S.C.A., an affiliate of Sun European Partners, LLP, the European adviser to Sun Capital Partners, Inc., a U.S. based private investment firm.

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Sep 30th, 2010

The annual net sales of the divested operations is approximately EUR 160 million and it currently employs some 1,100 people. The divested business consists of assets currently reported under discontinued operations. The agreed value for the transaction is EUR 52 million. Closing of the transaction is subject to approval by competition authorities.

“We are very pleased to progress in the strategic review of our remaining rigid plastic consumer goods operations in Europe. Especially being able to divest such a large part to a single buyer is a positive outcome”, says Huhtamäki Oyj’s CEO Jukka Moisio. “We feel that Sun Capital, with extensive packaging experience and presence in several European markets through certain of its affiliates, is a good future owner for the business.”

The divested operations include rigid plastic consumer goods packaging manufacturing in Hämeenlinna, Finland; Auneau, France; Siemianowice, Poland; and Istanbul, Turkey, as well as sales units in Germany and Lithuania. The divested units serve multinational and local customers with primarily dairy, edible fats, ready meal and ice cream packaging.

“The strategic review of the rigid plastics business in Italy currently reported under other activities will continue”, Jukka Moisio recaps.

Bank of America Merrill Lynch acted as Huhtamaki's financial advisor on the transaction.