Huhtamaki has entered into an agreement to acquire Josco (Holdings) Limited ("Josco"), a manufacturer and distributor of paper and plastic disposable packaging products headquartered in Hong Kong and with manufacturing in China. With the acquisition Huhtamaki continues to implement its strategy of quality growth and significantly strengthens its position as a global provider of high quality foodservice packaging products.
"I am extremely pleased to announce this acquisition," says Jukka Moisio, CEO of Huhtamaki 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."
Josco is privately owned and is a leader in paper and plastic disposable packaging products in China and Hong Kong. The company has also significant exports to Europe, the United States and Australia. The company's net sales in 2011 were approximately EUR 70 million and it employs approximately 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. Huhtamaki will acquire Josco for a debt free purchase price of EUR 67 million.
"With Josco we are able to create a superior service platform for foodservice customers in Asia," says Eric Le Lay, Executive Vice President, 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. Josco's service concept is truly customer focused," he continues. "The acquisition further strengthens our position as the leading foodservice packaging supplier in Asia. In addition to four manufacturing units in China we will have sales offices in Singapore, Thailand, Taiwan and Hong Kong."
Jukka Moisio, CEO of Huhtamaki Oyj: "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."
The transaction is expected to be finalized in April 2012.