Denmark’s Brødrene Hartmann A/S, a manufacturer of moulded fibre packaging for eggs and fruits, on Thursday announced the acquisition of Mohan Fibre Products Pvt. Ltd, marking its entry into India. Punjab-based Mohan Fibre sells moulded fibre packaging for egg and apple producers in India, with a focus on Himachal Pradesh, Punjab and Haryana.
The acquisition was made for 119 million Danish Krones/DKK (or ₹125.41 crore), corresponding to an Ebitda (earnings before interest, tax, depreciation and amortization) multiple of around 9, Hartmann informed US stock exchanges. “The transaction will strengthen Hartmann’s earnings per share (EPS) immediately after the acquisition, which is expected to be completed by mid-2020, conditional on a formal authority approval of Hartmann as a buyer,” it said.
“Mohan Fibre is a profitable company and will improve our earnings from day one. The acquisition marks a strategic decision to enter the great Indian market in which we see significant growth potential,” said Torben Rosenkrantz-Theil, chief executive officer, Hartmann.
The transaction establishes a solid platform for Hartmann in the attractive Indian market, which is characterized by a favourable demographic development and increasing egg and fruit production, the company said, adding the combination of population growth and rising urbanization in the coming years forms a solid foundation for continued development of the retail industry and increasing demand for quality packaging as supply chains are professionalized.
EY acted as the exclusive financial adviser to Mohan Fibre.
Hartmann said the acquisition is in line with its strategy, which entails significant investments in existing markets.
In 2020, the company plans to complete capacity expansion across Europe, with a focus on the British and southern European markets. It also looks to significantly expand its existing factory in the US and open a new factory in Brazil.
Founded in 1917, Hartmann sells egg and fruit packaging to manufacturers, distributors and retail chains across the world. Headquartered in Gentofte, Denmark, Hartmann has 2,000 employees.
