Huhtamaki to Acquire Hong Kong-Based Josco

Huhtamaki, Oyj, Espoo, Finland, has agreed to acquire Josco (Holdings) Ltd., a manufacturer and distributor of paper and plastic disposable packaging products headquartered in Hong Kong and with manufacturing in China, for a debt free purchase price of EUR 67 million. With the acquisition, Huhtamaki continues to implement its strategy of quality growth and significantly strengthens its position as a global provider of foodservice packaging products. The transaction is expected to be finalized in April.

"I am extremely pleased to announce this acquisition," said Jukka Moisio, CEO of Huhtamäki Oyj. "It further strengthens our leading position in the fast growing Asian markets, particularly in China. Many of our global customers are investing heavily to grow in China, and now we are better resourced to help them grow."

Privately owned Josco is a producer of paper and plastic disposable packaging products in China and Hong Kong. The company also has significant exports to Europe, the U.S., and Australia. Its net sales in 2011 were approximately EUR 70 million and it employs some 1,350 people. The company is strategically located in China with two manufacturing units (Guangzhou and Shandong) and two distribution centers (Shanghai and Beijing). It also has sales operations in Hong Kong.

"With Josco we are able to create a superior service platform for foodservice customers in Asia," says Eric Le Lay, EVP, Foodservice Europe-Asia-Oceania. "Josco's strategic locations in China, its complementary product range, and strong network of suppliers are a perfect strategic fit to our existing foodservice business in Asia."

Jukka Moisio, CEO of Huhtamäki Oyj, noted that "Huhtamaki began packaging businesses in Asia in 1984 with paper cup manufacturing. Now in 2012 with the Josco acquisition, the Group will have altogether 12 manufacturing units in Asia, including seven flexible packaging plants across Asia and the newly started films unit in Thailand. Huhtamaki will employ approximately 4,400 people in Asia and approximately 15% of the Group's net sales in 2012 are expected to come from Asia. With such excellent positions we are ready to participate in the growth of the region."

TAPPI
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