Huhtamaki to sell its Films business for €141m

24-Nov-2014 - Last updated on 24-Nov-2014 at 11:56 GMT

Related tags Sales

Huhtamaki has entered into an agreement to sell its Films business to DBAG Fund VI, a fund advised by German private equity company Deutsche Beteiligungs (DBAG), expected to be finalized in late 2014 or early 2015.

Upon the closing of the transaction, Huhtamaki expects to book a small capital gain and a reduction in goodwill of approximately €45m.

Huhtamaki announced in July this year, it was evaluating options for its Films business, to focus on its food packaging.

The Films segment manufactures and sells films for technical applications including labels, adhesive tape, hygiene and packaging.

Jukka Moisio, CEO, Huhtamaki, said the sale represents a new chapter in the company.

"We are very pleased to announce the divestment of our Films segment. We feel that DBAG is a good and committed owner for the Films business and has good resources for growing and developing the business further in the future,” he said.

“The segment's net sales have grown well in 2014 and its financial performance has improved markedly. The future owner will continue to benefit from this good development.”

The annual net sales of the Films segment were €187m in 2013 and the segment had 927 employees at the end of September 2014.