Huhtamaki acquires U.S.-based specialty folding carton manufacturer Paris Packaging for US$32.5M from Packaging Holding, adds folding carton product platform
September 2, 2011
– Huhtamaki has acquired assets and business of Paris Packaging, Inc., a manufacturer of specialty folding cartons in the United States. With the acquisition Huhtamaki continues to implement its strategy of profitable growth, significantly strengthening its positions in the North American foodservice and consumer goods packaging markets.
The assets and business of Paris Packaging, Inc., owned by 21st Packaging Holding, L.P., were acquired by Huhtamaki, Inc., Huhtamäki Oyj's US based subsidiary, for a purchase price of EUR 22.8 million (USD 32.5 million). The 2010 net sales of the acquired business were approximately EUR 43 million (USD 62 million). The business, which employs approximately 300 people in three manufacturing units located in Paris, Texas; Andalusia, Alabama and Hopkinsville, Kentucky, will become part of Huhtamaki's North America business segment. The acquisition is expected to be EPS accretive as of 2012.
"This acquisition is an example of the quality growth Huhtamaki is focused on as we leverage our solid financial position to become even more competitive," says Jukka Moisio, CEO of Huhtamäki Oyj.
"We are pleased to have acquired such a high quality business," says Clay Dunn, Executive Vice President North America. "The addition of a new specialty folding carton product platform complements our existing offering of tableware, cups, containers, carriers, trays and serviceware, and demonstrates our commitment to growth in North America."