Huhtamaki has completed the acquisition of the majority of the business of Everest Flexibles
FINLAND (News release) -- Huhtamaki has completed the acquisition of the majority of the business of Everest Flexibles (Pty) Limited ("Everest"), a privately-owned flexible packaging manufacturer in South Africa. The annual net sales of the acquired business is approximately EUR 40 million and it employs altogether approximately 460 people.
The business was acquired for an enterprise value of EUR 58 million. The deal was paid partly in cash and partly in shares, as the sellers of Everest entered into a joint venture also with Huhtamaki's Flexible Packaging, Foodservice and Fiber Packaging operations in South Africa. As a result, the sellers of Everest now own 30% of all Huhtamaki's activities in South Africa. The joint venture structure allows Huhtamaki to improve its B-BBEE ("Broad-based Black Economic Empowerment") rating and subsequently competitiveness in South Africa.
The business will be reported as part of the Flexible Packaging business segment as of December 1, 2019.