Huhtamaki Acquires Flexible Packaging Supplier Elif For £350m

With this acquisition, Huhtamaki reinforces its position as a leading flexible packaging company in emerging markets and strengthens its existing flexible packaging business in attractive consumer product categories. In line with Huhtamaki’s 2030 growth strategy, the acquisition adds scale in strategic geographies and supports Huhtamaki’s progress towards reaching its high sustainability ambitions. The company said the acquisition also expands its technology capabilities and product range, allowing it to serve its customers even better.

Founded in 1972, Elif, which has operations in Turkey and in Egypt, is a trusted long-term partner for major global consumer brand owners in Europe, Middle East and Africa. 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.

Specialised 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 utilising production scrap from both its own as well as from customer locations. More than 90% of Elif’s current product portfolio is said to be recyclable and the product portfolio also includes compostable films. In 2020, Elif’s net sales were approximately €163m (£138m)) and it employs approximately 1,500 highly skilled people in its two state-of-the art manufacturing locations in Istanbul, Turkey and Cairo, Egypt.

The acquisition of Elif supports Huhtamaki’s 2030 growth strategy by leveraging scale, strengthening capabilities and improving competitiveness. It adds state-of-the-art flexographic printing capability with in-house cliché production to the Huhtamaki technology offering, expands Huhtamaki’s flexible packaging product range and creates cross-selling opportunities across customers and geographies. With the acquisition, Huhtamaki also expands its flexible packaging manufacturing footprint into Turkey, one of the top future growth countries. With the vast majority of Elif’s product range already recyclable or compostable, the acquisition is also a significant milestone in reaching Huhtamaki’s ambition to have 100% of its products designed to be recyclable, compostable or reusable by 2030.

Charles Héaulmé, president and chief executive of Huhtamaki, said: “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.”

Selçuk Yarangűmelioğlu, chief executive of Elif, said: “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.”

Elif 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 £370m 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.