Huhtamaki increases JV stake to boost Middle-East and North Africa

The additional shares in the JV with Olayan Saudi Holding Company (OSHCO) were acquired for €4m and take its stake from 40% to 50%.

Operative territory expands from the Gulf Cooperation Council (GCC) countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates to include Middle Eastern and Northern African countries of Algeria, Egypt, Iran, Iraq, Lebanon, Libya, Morocco, Pakistan, Palestine, Sudan, Syria, Tunisia and Yemen.

APPCO's product range is broadened to include all Huhtamaki Foodservice Europe-Asia-Oceania’s foodservice packaging products.

As a result of the transaction, a non-recurring gain of €8m will be booked in Q2 2016 in the Foodservice Europe-Asia-Oceania business segment.

APPCO is a joint venture company between Huhtamaki and OSHCO, in Al-Khobar, Saudi Arabia since 1985. The annual net sales in 2015 were €24m.

Huhtamäki has also signed a €150m freely transferable loan agreement (Schuldschein). It is divided into two floating rate and two fixed rate tranches with maturities of five and seven years.

It will use the funds for refinancing and general corporate purposes of the group.

The firm has a network of 71 manufacturing units, 23 sales offices in 34 countries and 15,800 employees.