Finnish sustainable packaging provider Huhtamaki has taken over full ownership of Huhtamaki Tailored Packaging (HTP), its Australian foodservice packaging distribution business.
HTP was founded as a joint venture (JV) between Huhtamaki and Tailored Packaging, an importer and distributor of foodservice packaging in Australia.
The business supplies finished packaging products to metropolitan and regional packaging wholesalers, food wholesalers, club and hospitality suppliers, as well as national quick service restaurant businesses.
Founded in Sydney in 2001, HTP operates sales offices and distribution centres in each state of Australia.
The company has more than 130 employees across the country.
The debt-free deal is valued at around €19m ($20.26m). Prior to it, Huhtamaki had owned around 76% of the HTP business.
In 2018, Huhtamaki acquired a 65% stake in Tailored Packaging for a debt-free purchase price of €35m.
The company has been reporting HTP as part of its Foodservice Europe-Asia-Oceania business segment since 2018, when the JV started operations.
Earlier this month, Huhtamaki recorded full-year net sales of €4.47bn for fiscal 2022 (FY22), up 25% from €3.57bn in fiscal 2021 (FY21).
The company’s comparable net sales growth in FY22 was 15%, against 7% in FY21.
Its reported earnings before interest and taxes (EBIT) for the year were €405m, while its adjusted EBIT were €395m.
Based in Espoo, Huhtamaki supplies sustainable packaging for customers in 37 countries, operating 116 production sites worldwide.
Last year, the company inaugurated an expansion of its packaging manufacturing site located in Nules, Spain.
The expansion project was carried out to meet growing demand for renewable and recyclable paper-based packaging.
It has doubled the site’s capacity and is expected to create around 130 jobs once fully operational.
The expansion involved a €20m investment, which included a €2.2m grant from the Conselleria de Hacienda y Modelo Economico.