Huhtamaki has entered into an agreement to acquire the assets of Jiangsu Hihio-Art Packaging Co. Ltd., a leading manufacturer of paper bags, wraps and folding carton packaging in China. The company currently serves international quick-service restaurants (QSR) as well as national bakery chains.

The debt free purchase price is EUR 27 million.

Jiangsu Hihio-Art Packaging currently employs approximately 200 people in its manufacturing unit in Xuzhou city, Jiangsu. Employees will be offered an opportunity to continue to work for Huhtamaki after the transaction is closed.

In 2020 the annual net sales of privately-owned Jiangsu Hihio-Art Packaging were approximately EUR 20 million.

Following the acquisition, Huhtamaki will have altogether four manufacturing units in China: Guangzhou, Shanghai, Tianjin, and Xuzhou.

"I am excited with the opportunities that this acquisition represents for our core business in China. Urbanization, middle class expansion and innovation into more sustainable packaging solutions drive growth across Asia," said Eric Le Lay, President for Huhtamaki's Fiber Foodservice EAO business segment. "The acquisition of Jiangsu Hihio-Art Packaging Co. Ltd extends our product portfolio and access to new channels. This enables us to accelerate growth in China in line with our strategy."

Huhtamaki expects the acquisition to close by the end of the third quarter 2021, following the fulfillment of certain customary closing conditions, after which the business will be reported as part of the Foodservice Europe-Asia-Oceania reporting segment.

Huhtamaki is a key global provider of sustainable packaging solutions for consumers around the world. Its innovative products protect on-the-go and on-the-shelf food and beverages, ensuring hygiene and safety, and help prevent food waste. To learn more, visit: www.huhtamaki.com.

SOURCE: Huhtamaki