Sustainable packaging solutions provider Huhtamaki has acquired Zellwin Farms, a producer of moulded fibre packaging in Florida, US.
According to a Huhtamaki press release, the deal is part of the company’s strategy to strengthen its footprint in fibre-based egg packaging solutions. The agreed enterprise value for the acquisition is $18m.
Huhtamaki North America president Ann O’Hara said: “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 moulded fibre.
“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.”
Zellwin Farms is known for producing egg cartons and trays using recycled paper materials collected from the local area.
The company caters to clients in the Southeastern region of the US from its sole manufacturing site and has served the packaging needs of egg producers for more than 20 years.
Its yearly revenue stands at approximately $20m, according to the press release. The acquisition will expand Huhtamaki’s production capability and technical resources in the moulded fibre space.
Huhtamaki president and CEO Ralf Wunderlich said: “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.”
Huhtamaki offers sustainable packaging solutions worldwide with 18,000 employees operating in 36 countries and 102 locations.
Last month, Huhtamaki unveiled ProDairy, a recyclable paper cup made for yoghurt and dairy products.
