Huhtamaki acquires Zellwin Farms Company

Core Viewpoint - Huhtamaki has acquired Zellwin Farms for an enterprise value of USD 18 million, enhancing its position in the molded fiber industry, particularly for egg cartons and egg flats [1][2]. Company Overview - Zellwin Farms has been operational for over 20 years, serving egg producers in the Southeastern US, with annual net sales of approximately USD 20 million [2]. - The acquisition will provide Huhtamaki with increased capacity and capabilities in molded fiber packaging [2]. Strategic Rationale - The acquisition aligns with the trend in North America towards renewable and recyclable packaging options in the egg industry, supporting Huhtamaki's goal to lead in this category [3]. - The transaction is expected to enhance manufacturing capacity and strengthen customer relationships [3]. Growth Strategy - Huhtamaki emphasizes a disciplined approach to inorganic growth, targeting markets where shareholder value can be created [4]. - The acquisition is margin-enhancing and is expected to be accretive to earnings per share (EPS) from the first year [4]. Company Background - Huhtamaki is a global provider of sustainable packaging solutions, with a history of over 100 years and operations in 36 countries [5][6]. - In 2024, Huhtamaki reported net sales of EUR 4.1 billion, highlighting its significant market presence [6].