Huhtamäki and Warburg Reportedly in Race for Parksons
March 04, 2021 at 12:09 am EST
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Huhtamäki Oyj (HLSE:HUH1V) and Warburg Pincus LLC are the final two contenders to acquire a controlling stake in Parksons Packaging Ltd. said multiple people aware of the development. The transaction, valuing the company for about INR 28.00 billion – INR 30.00 billion, will see the exit of private equity firm Kedaara Capital, which invested in the company in 2015. Meanwhile, promoters of Parksons, will continue to hold a minority stake post transaction if the deal is signed with the PE fund, said one of the persons cited above. Bain Capital and KKR were also in the fray to buy Parksons, but didn't make it to the final round, sources said. Credit Suisse is running a formal process to find a buyer for Parksons. When contacted, spokespersons with Huhtamaki, Kedaara Capital, Bain KKR and Warburg Pincus declined to comment, while mails sent to Parksons Packaging did not elicit any responses till press time.
Huhtamaki Oyj specializes in developing, manufacturing and marketing paper, cardboard and plastic packaging. Net sales break down by market as follows:
- outside catering (59.7%): disposable packaging and tableware for the fast-food professionals and vending machine. Net sales break down by geographic area between North America (58.5%) and Europe/Asia/Oceania (41.5%);
- food processing industry and consumer goods (40.3%): flexible packaging, films, molded fiber packaging, etc. for the packaging of food, cosmetics, household products, etc.
Net sales are distributed geographically as follows: Finland (1.8%), the United States (34.9%), Germany (10.5%), the United Kingdom (7.8%), India (6.3%), Turkey (4.2%), Australia (4.2%) , Thailand (3.8%), Poland (3%), South Africa (2.8%), Czech Republic (2.5%), and other (18.2%).
HUHTAMÄKI OYJ 
