Wednesday, 27 October 2010 08:13

Stora Enso to acquire majority of packaging company Inpac International in China and India

Rate this item
(0 votes)

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 11million. 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.

For further information, please contact:
Jouko Karvinen, CEO, tel. +358 2046 21410
Mats Nordlander, EVP, Packaging and Asia Pacific, tel. +46 1046 72703
Lauri Peltola, Head of Communications and Global Responsibility, tel. +358 2046 21380
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242

Read 3582 times