Huhtamaki acquires majority in Australian packaging distributor, sells confectionery portfolio
30 Apr 2018 --- Finland-based food and beverage packaging specialists, Huhtamaki, has announced its majority acquisition of Tailored Packaging, an Australian foodservice packaging distribution and wholesale group. Meanwhile, Huhtamaki has also sold its confectionary trademark portfolio to Highlander Partners, a US-based investment firm.
In a statement, Huhtamaki said: “With the acquisition, Huhtamaki gains access to a national network of distribution centers across Australia, allowing it to serve its customers even better and with more agility.”
Tailored Packaging is a national foodservice packaging distribution and wholesale group, founded in Sydney in 2001. It has sales offices and distribution centers in each state of Australia. Tailored Packaging employs around 130 people and is one of the largest importers and distributors of foodservice packaging in Australia.
The debt-free purchase price for 65 percent ownership of the joint venture was approximately €35 million. As the majority shareholder, Huhtamaki will consolidate the joint venture company as a subsidiary of the Group's financial reporting. The business will be reported as part of the Foodservice Europe-Asia-Oceania business segment.
The acquisition further consolidates Huhtamaki’s position in the global foodservice packaging sector following the joint venture agreement with Scottish paper bag manufacturer, Smith Anderson, earlier in the year.
Meanwhile, Huhtamaki has sold its confectionary trademark portfolio to Highlander Partners, a US-based investment firm. Related to the sale, an after taxes gain of approximately US$16 million will be booked as an item affecting comparability (IAC) during the second quarter of 2018.
The sold trademark portfolio was related to Huhtamaki's confectionary business divested in 1996.
Last year, Huhtamaki announced plans to construct a new €11 million manufacturing facility in Hämeenlinna, Finland, to serve its customers in the Baltic and Nordic markets.
PackagingInsight has contacted Huhtamaki for more information on the deals.
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