You have 3 free articles left this month. Get your free Basic subscription now and gain instant access to more.

Finland's Huhtamaki to buy Turkey’s packaging firm Elif

Finland's Huhtamaki to buy Turkey’s packaging firm Elif Kritchanut/Shutterstock.com

ANKARA (Turkey), August 17 (SeeNews) - Finnish packaging solutions provider Huhtamaki Oyj said it has agreed to acquire Turkish peer Elif Holding for 412 million euro ($484.8 million) to reinforce its position in emerging markets.

The purchase supports Huhtamaki’s 2030 growth strategy by leveraging scale, strengthening capabilities and improving competitiveness, the buyer said in a press release on Monday.

You can subscribe to our M&A newsletter here

Established in 1972, Elif specialises in sustainable flexible packaging for food, beverage, pet, home and personal care industries, with its products used in more than 200 production sites in over 50 countries. The company, which is present in Europe, the Middle East and Africa, operates two plants in Istanbul and Cairo and employs more than 1,500 people.

The business to be acquired generated net sales of about 163 million euro in 2020. Upon completion, the Turkish firm will become part of Huhtamaki’s flexible packaging business segment.

“Under new ownership, we will continue to deliver sustainable solutions to our customer base globally, enhance our focus on fast-growing emerging markets, realize synergies through scale and expand our capabilities,” Elif CEO Selcuk Yarangumelioglu said in the statement.

The transaction hinges on regulatory clearances. To fund the acquisition, Huhtamaki has signed a $500 million bridge financing facility with Citi.

($ = 0.8498 euro)

 
Compare