Bemis Company, Inc. (NYSE:BMS) today announced that it has acquired the South American rigid packaging operations of Huhtamaki Oyj, a global manufacturer of consumer and specialty packaging. This rigid packaging business, which includes three facilities in Brazil and one facility in Argentina, recorded annual net sales of approximately US$85.8 million in 2008, primarily to dairy and food service markets.
In this transaction, Bemis acquired the common stock of Huhtamaki Plásticos Rígidos Brasil Ltda and Huhtamaki Argentina S.A. for a total purchase price of approximately US$43 million. The purchase price was paid with a combination of the equivalent of US$32.3 million cash on hand, US$1.9 million of debt assumed, and a US$8.8 million note payable to the seller due May 31, 2010.
"This acquisition supports Bemis' growth strategy to expand in South American markets that fit our strengths and capabilities," said Henry Theisen, President and Chief Executive Officer of Bemis Company, Inc. "Huhtamaki's rigid packaging operations are well-managed, state-of-the art facilities. This business will complement our existing South American operations. We expect this acquisition to be modestly accretive to earnings per share in 2009."