The business was acquired for an enterprise value of about $64 million. The deal was paid partly in cash and partly in shares, as the sellers of Everest entered into a joint venture also with Huhtamaki’s Flexible Packaging, Foodservice and Fiber Packaging operations in South Africa. As a result, the sellers of Everest now own 30% of all Huhtamaki’s activities in South Africa.
The joint venture structure allows Huhtamaki to improve its B-BBEE (“Broad-based Black Economic Empowerment”) rating and subsequently competitiveness in South Africa.
The business was reported as part of the Huhtamaki Flexible Packaging business segment as of Dec. 1, 2019.