India, April 24 -- Huhtamaki has acquired Zellwin Farms, a privately-owned business located in Zellwood, Florida in the United States. The USD 18 million enterprise value transaction will support Huhtamaki's growth within the molded fiber industry, specifically for egg cartons and egg flats.
Zellwin Farms has been serving egg producing customers throughout the Southeastern US from a single site for more than 20 years. The annual net sales of the acquired business is approximately USD 20 million. The transaction will benefit Huhtamaki with additional capacity and capabilities in molded fiber packaging.
"This acquisition is attractive for us as legislation in North America continues to shift packaging choices in the egg industry toward more renewable and recyclable options, such as molded fiber. This acquisition will support our aspiration to be a leader in this category, deliver installed capacity to strengthen our manufacturing footprint, and help grow our excellent customer relationships", says Ann O'Hara, President, North America.
"We have a clear focus on accelerating profitable growth through all levers. Inorganic growth is an important tool for us, and we aim to do it in a disciplined manner in markets and geographies in which we are confident that we can create shareholder value. This margin-enhancing acquisition fits our criteria perfectly and is EPS accretive from year 1", says Ralf K. Wunderlich, President & CEO of Huhtamaki.
Published by HT Digital Content Services with permission from FoodTechBiz.