Bemis takeover of South American rigid packing operations
The US company acquired the common stock of Huhtamaki Plasticos Rigidos Brasil Ltda and Huhtamaki Argentina S.A. for around US$43 million. The purchase price was paid with a combination of $32.3 million in cash, $1.9 million of debt assumed, and an $8.8 million note payable to the seller by May 31, 2010.
This rigid packaging business, which includes three facilities in Brazil and one plant in Argentina, recorded annual net sales of approximately $85.8 million in 2008, primarily to dairy and food service markets, said Bemis.
Bemis President and CEO Henry Theisen said: “This acquisition supports Bemis' growth strategy to expand in South American markets that fit our strengths and capabilities. Huhtamaki's rigid packaging operations are well-managed, state-of-the art facilities. This business will complement our existing South American operations. We expect this acquisition to be modestly accretive to earnings per share in 2009."
