HELSINKI, Nov 24 (Reuters) – Finnish packaging company Huhtamaki, known for making paper cups for McDonald’s, has agreed to sell its films business in a deal led by German private equity company Deutsche Beteiligungs AG for 141 million euros ($175 million).
The business, which contributed 187 million euros of the group’s 2.3 billion euros in total sales last year, provides films for labels, tapes and hygiene products.
Huhtamaki, which had been reviewing options for the films business as the group focuses on food packaging, said it expects to book a small capital gain as well as a reduction in goodwill of about 45 million euros upon closing the deal.
The majority of the business will be held by DBAG Fund VI and its management, while Deutsche Beteiligungs will hold 17 percent of it, the German company said.
Huhtamaki announced in July that it would buy India’s Positive Packaging for 247 million euros to increase its access to Indian and Middle Eastern markets.
“Following the divestment and the Positive Packaging deal, Huhtamaki has about 300-400 million euros to spend on acquisitions. Most likely it will seek growth from developing markets,” said Inderes analyst Antti Viljakainen in a note to investors, adding that the deal’s selling price was in line with his estimates.