Friday, May 10, 2024

Huhtamaki divests its operations in Russia

Transaction includes four manufacturing units in Russia, employing 724 people

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Huhtamaki divests
The cash and debt-free sales price is EUR 151 million

Huhtamaki has sold its operations in Russia to Espetina. Espetina is a holding company owned by Alexander Govor and Iury Kushnerov. The transaction includes four manufacturing units in Russia, employing 724 people.

On 14 April 2022, Huhtamaki announced its intention to divest its operations in Russia. This followed an earlier decision to stop all investments in Russia at the outbreak of the invasion of Ukraine.

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“We consider that the current evolution of the situation and the long-term outlook in Russia will prevent the realization of our growth strategy and long-term ambitions in the country. We are pleased to bring to a close the subsequent review of our strategic options in Russia. As part of the process, we conducted extensive due diligence to find the best possible buyer and future partner for our local employees – the safety and wellbeing of whom remain important to us. We feel that Espetina will be a good and committed owner for the business and our employees’ future, ” says Charles Héaulmé, President and CEO, Huhtamaki.

The cash and debt-free sales price is EUR 151 million. As a result of the sale, Huhtamaki expects to book a gain of approximately EUR 15 million in its third quarter. The presented figures are preliminary estimates which are affected by, among others, changes in RUB/EUR exchange rate. The sale is not expected to have a significant financial impact on Huhtamaki in 2022.

NewsDesk
NewsDesk
The editorial team of The Packman who handle all the press releases with Sunil Jain working as the desk editor.

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