Business News
Stora Enso to acquire majority of packaging company Inpac International in China and India
Wednesday 27. October 2010 - Group starts a new journey with its customers in two key growth markets
Stora Enso has signed an agreement to acquire 51% of the Chinese packaging
company Inpac International. Inpac is a packaging company with production
operations in China and India, and service operations in Korea. Inpac
specialises 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.
“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,” says Stora Enso CEO Jouko Karvinen.
“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,” says Mats Nordlander, Stora Enso Executive Vice
President, Packaging and Asia Pacific.
“We are very pleased to be joining forces with Stora Enso. By combining our
skills and knowledge through this partnership, we can continue to develop this
packaging company further and serve global brand owners with innovative
packaging solutions,” says Inpac Chairman Guo Cai.
Inpac’s main production plants are at Qian’an in northern China, Dongguan in
southern China and Chennai in India. The company has approximately 3 100
employees.
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.