Stora Enso to Acquire 51% Stake in Chinese Packaging Company
Oct. 26, 2010 - Stora Enso said that it has signed an agreement to acquire 51% of the Chinese packaging company Inpac International. Inpac has production operations in China and India, and service operations in Korea.
According to Stora Enso, Inpac specializes in manufacturing consumer packaging, especially for global manufacturers of mobile phones and other consumer goods.
The enterprise value of the company is EUR 82 million. In 2009, Inpac's sales were EUR 82 million and EBITDA EUR 16 million, Stora Enso said.
"This joint venture is an important step on the path to our future offering strong synergies with our existing Stora Enso consumer packaging businesses in Europe. This step supports our effort to become a market and consumer need driven renewable materials company — with access to the two fastest-growing consumer packaging markets globally," said Jouko Karvinen, Stora Enso's CEO
Mats Nordlander, Stora Enso executive vice president, Packaging and Asia Pacific, added, "We believe that this acquisition provides an excellent opportunity to enhance our presence in China and India, and strengthen our existing relationships with customers and brand owners by supplying packaging directly to them in these markets, as well as Europe."
Inpac's main production plants are at Qian'an in northern China, Dongguan in southern China and Chennai in India. The company has approximately 3,100employees.
Stora Enso's annual operating profit is expected to be enhanced by EUR 11 million.
The all-cash acquisition is expected to be closed within six months, subject to approval by regulatory and competition authorities, and other customary closing conditions.
SOURCE: Stora Enso