Huhtamaki PPL buys Positive Packaging for Rs2,015 crore1 min read . Updated: 08 Jul 2014, 10:48 PM IST
The company has signed agreement to this effect, and is looking to complete the transaction in next three months
Mumbai: Finland-based packaging firm Huhtamaki PPL Ltd, formerly known as The Paper Products Ltd, has agreed to buy 100% in Positive Packaging Industries Ltd for ₹ 2,015 crore, a senior Huhtamaki official said. The company has signed an agreement to this effect, and is looking to complete the transaction in next three months.
Positive Packaging Industries is part of Nigeria-based Enpee Group headed by N.P. Kirpalani.
It is present in nine countries including India, UAE, Kenya, Egypt, Nigeria, South Africa, Ghana, UK and the US. The Indian business will be acquired for ₹ 818 crore, the firm said in a filing to the BSE.
Positive Packaging Industries offers packaging solutions like flexible packaging, labelling, high-quality printing and metalizing (using metalized films) across sectors including food and beverages, fast-moving consumer goods, pharmaceuticals, and industrial and agro products.
The deal will allow Huhtamaki to double its India revenues, which stood at ₹ 1,000 crore as on 31 March 2014. It will also allow the Finnish firm to strengthen its presence in Africa. Huhtamaki serves top clients like Hindustan Unilever Ltd and Coca-Cola Company.
Huhtamaki Oyj, headquartered in Finland, is one of the top 10 consumer packaging companies in the world.
“Our India revenues will double immediately after we acquire Positive Packaging. The transaction is in line with Huhtamaki’s global strategy to invest in fast growing emerging economies," said Shashank Sinha, executive vice-president of flexible packaging at Huhtamaki Group. India revenue of Positive Packaging Industries stand at ₹ 1,000 crore, he added.
The transaction is subject to approval from Competition Commission of India (CII), Reserve Bank of India (RBI) and shareholders of Huhtamaki.
On Tuesday, shares of Huhtamaki PPL Ltd, listed as Paper Products Ltd, closed at ₹ 137.45, down 2.12% or 2.85 points, while the benchmark Sensex closed at 25,582.11 points, down 1.98%.