Huhtamaki has entered into an agreement to acquire Elif Holding A.Ş., a major supplier of sustainable flexible packaging to global FMCG brand owners, with operations in Turkey and in Egypt.
The acquisition is in line with the Finnish sustainable packaging specialist’s 2030 growth strategy in terms of geographic reach as well as technology capabilities and product range. It enables Huhtamaki to expand its flexible packaging manufacturing footprint into Turkey, which the company sees as one of the top future growth countries. In addition, the two companies share similar commitments to the three areas of sustainability, environmental, social and governance and to supporting their customers with their sustainability goals.
Founded in 1972, Elif’s goal, to be achieved by 2025, is to develop packaging that is 100 percent recyclable, reusable, or compostable. The company is specialised in high-quality sustainable flexible packaging, based on both post-industrial and post-consumer recycled polymers. The company also has an advanced system of collecting and utilising production scrap from both its own as well as from customer locations in place.
The company is in fact already well on its way towards reaching its 2025 target: more than 90% of Elif’s current product portfolio is recyclable and the product portfolio also includes compostable films. Because of this, the acquisition also marks a significant milestone for Huhtamaki, as it brings that company’s ambition to have 100% of its products designed to be recyclable, compostable or reusable by 2030 that much closer.
In 2020, Elif’s net sales were approximately EUR 163 million (USD 195 million) and it employs approximately 1,500 highly skilled people at two manufacturing locations in Istanbul, Turkey and Cairo, Egypt.
Huhtamaki will acquire Elif for a cash free debt free purchase price of EUR 412 million (USD 483 million). The business will become part of Huhtamaki’s Flexible Packaging business segment. To support the financing of Huhtamaki’s acquisition of Elif, Huhtamäki Oyj has signed a bridge financing facility of USD 500 million with Citi, who has also acted as an advisor in the transaction. The transaction is subject to the approval of competition authorities in Turkey, and it is expected to be closed after regulatory approval. Both companies will continue to operate on a business-as-usual basis until closing