Finland’s Huhtamaki acquires Turkey’s flexible packaging giant Elif

FINLAND – Huhtamaki Oyj, a key global provider of sustainable packaging solutions, has underpinned its leadership position in emerging markets with the acquisition of Elif Holding A.S., leader in sustainable flexible packaging in Europe, Middle East and Africa, serving major global brand owners.

With this acquisition, Huhtamaki strengthens its existing flexible packaging business in attractive consumer product categories.

Huhtamaki will acquire Elif for a cash free debt free purchase price of EUR 412 million (US$ 483 million). The business will become part of Huhtamaki’s Flexible Packaging business segment.

To back the financing of the company’s acquisition of Elif, Huhtamaki has signed a bridge financing facility – short-term loan – of US$ 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.

The acquisition of Elif supports Huhtamaki’s 2030 growth strategy and the achievement of its high sustainability ambitions. It also expands Huhtamaki’s technology capabilities and product range, allowing it to serve its customers even better. Further it expands its manufacturing footprint in Turkey, one of the top future growth countries.

“I am thrilled to announce this acquisition. With a great portfolio, a strong focus on sustainability and high growth ambitions, Elif is a perfect fit for Huhtamaki. We are impressed by Elif’s focus on its customers with decades of strategic partnerships with blue-chip multinational companies who are leaders in their field and Elif’s strong and capable leadership team. Our 2030 growth strategy is particularly focused on sustainability and competitiveness, which Elif strongly supports. I look forward to working with Elif’s management to continue their success under the new ownership,” remarked Charles Héaulmé, President and CEO of Huhtamaki.

Founded in 1972, Elif is a trusted long-term partner for major global consumer brand owners. Similarly, to Huhtamaki, sustainability is embedded into Elif’s strategy and it is committed to the three areas of sustainability, environmental, social and governance and to enabling its customers to reach their sustainability goals by providing continuous innovation.

Specialized in high-quality sustainable flexible packaging, Elif uses both post-industrial and post-consumer recycled polymers as raw materials. It also has an advanced system of collecting and utilizing production scrap from both its own as well as from customer locations.

“We are excited to join Huhtamaki, a company that shares our sustainability and growth vision. Elif has always been a dedicated partner for multinationals with a best-in-class asset base, service and quality. 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,” commented Selcuk Yarangumelioglu, CEO of Elif.

More than 90% of Elif’s current product portfolio is recyclable and the product portfolio also includes compostable films. In 2020, Elif’s net sales were approximately EUR 163 million (USD 195 million).

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