In line with Huhtamaki’s 2030 growth strategy, the acquisition adds scale in strategic geographies and supports Huhtamaki’s progress towards reaching its sustainability ambitions. The acquisition also expands Huhtamaki’s technology capabilities and product range.
Founded in 1972, Elif is a sustainable flexible packaging supplier in Europe, Middle East and Africa, serving major global brand owners.
Specializing in sustainable flexible packaging, Elif uses both post-industrial and post-consumer recycled polymers as raw materials. It also has an advanced system of collecting and utilizing production scrap from both its own as well as from customer locations. More than 90% of Elif’s current product portfolio is recyclable and the product portfolio also includes compostable films.
In 2020, Elif’s net sales were approximately $195m, and it employs approximately 1,500 people in its two manufacturing locations in Istanbul, Turkey and Cairo, Egypt.
The acquisition of Elif supports Huhtamaki’s 2030 growth strategy by leveraging scale, strengthening capabilities and improving competitiveness. The acquisition adds flexographic printing capability with in-house cliché production to the Huhtamaki technology offering.
It expands Huhtamaki’s flexible packaging product range and creates cross-selling opportunities across customers and geographies. With the acquisition, Huhtamaki also expands its flexible packaging manufacturing footprint into Turkey, one of the top future growth countries. With the vast majority of Elif’s product range already recyclable or compostable, the acquisition is also a milestone in reaching Huhtamaki’s ambition to have 100% of its products designed to be recyclable, compostable or reusable by 2030.
Charles Héaulmé, president and CEO of Huhtamaki, said, “I am thrilled to announce this acquisition. With a great portfolio, a strong focus on sustainability and high growth ambitions, Elif is a perfect fit for Huhtamaki. We are impressed by Elif’s focus on its customers with decades of strategic partnerships with blue-chip multinational companies who are leaders in their field and Elif’s strong and capable leadership team.
“I look forward to working with Elif’s management to continue their success under the new ownership. We are looking forward to build on the existing strong foundations together, to further grow the business and deliver innovative sustainable packaging solutions to current and new customers globally.”
Selçuk Yarangűmelioğlu, CEO of Elif, said, “We are excited to join Huhtamaki, a company that shares our sustainability and growth vision. Elif has always been a dedicated partner for multinationals with a best-in-class asset base, service and quality. Under new ownership, we will continue to deliver sustainable solutions to our customer base globally, enhance our focus on fast-growing emerging markets, realize synergies through scale and expand our capabilities.”
Huhtamaki will acquire Elif for a cash free debt free purchase price of $483m. The business will become part of Huhtamaki’s Flexible Packaging business segment. To support the financing of Huhtamaki’s acquisition of Elif, Huhtamäki Oyj has signed a bridge financing facility of $500m with Citi, which also acted as an advisor in the transaction.
The transaction is subject to the approval of competition authorities in Turkey, and it is expected to be closed after regulatory approval. Both companies will continue to operate on a business-as-usual basis until closing.