Food and drink packaging manufacturer Huhtamaki has acquired South Africa-based flexible packaging manufacturer Everest Flexibles for an enterprise value of €58m ($63.42m).

Huhtamaki will pay for 70% ownership of Everest in cash and in shares.

Everest’s sellers are expected to sign a joint venture (JV) with Huhtamaki’s Foodservice and Fiber Packaging operations, which will enable them to own 30% of all Huhtamaki’s activities in the country.

The deal will expand Huhtamaki’s flexible packaging manufacturing operations in South Africa and strengthens its market position.

Everest Flexibles’ product range and customer portfolio will complement Huhtamaki’s portfolio.

The company currently operates a manufacturing facility and an adjacent cylinder making facility in Durban. It employs approximately 420 people across its operations.

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Huhtamaki Flexible Packaging executive vice-president Olli Koponen said: “With Everest we will be able to serve our current and new customers in South Africa and the surrounding region even better, offering them a full range of flexible packaging solutions with faster lead times.

“We will have two flexible packaging manufacturing units in Africa, Everest and the recently opened facility in Egypt. With these two sites, we will be in an excellent position to tap into the growth opportunities of this exciting region.”

The transaction is currently subject to the approval of competition authorities and is expected to close within a few months.

Following the completion of the deal, Huhtamaki will merge Everest with its flexible packaging sales division in South Africa and will make the business a part of its Flexible Packaging business segment.

Headquartered in Espoo, Finland, Huhtamaki operates a network of 79 manufacturing units and 24 sales offices in 35 countries.

In July, Huhtamaki launched a compostable Bioware Impresso double-walled hot cup.

During the same month, the company also partnered with UK recycling firm First Mile to boost the effectiveness of disposable cup recycling across the UK.