The Finnish coffee cup and packaging giant has sold its assets in Russia for $151m, stating that its growth strategy and long-term ambitions in the country could no longer be achieved
Huhtamäki expects the sale to boost its third quarter revenues by approximately €15m ($15m) | Photo credit: Huhtamäki
Huhtamäki has sold its operations in Russia, including four manufacturing units, to Russian holding company Espetina Ltd for €151m ($151m).
The Finnish coffee cup and packaging company announced its intention to divest its operations in Russia in April 2022 due to the invasion of Ukraine.
Espetina is co-owned by Alexander Govor, who also purchased McDonald’s 847 restaurants and 154 McCafé stores in Russia in May 2022. Espetina will employ over 700 Huhtamäki staff as part of the transaction.
The sale is not expected to have a significant financial impact on Huhtamäki in 2022, but the Espoo-based business did say it expects the transaction to boost its third quarter revenues by approximately €15m ($15m).
Huhtamäki achieved sales growth of 31% in the first six months of 2022 to reach €2.2bn ($2.2bn). In 2021, Russian business accounted for 3% of the group’s total sales, approximately €108m ($116m).
“We consider that the current evolution of the situation and the long-term outlook in Russia will prevent the realisation of our growth strategy and long-term ambitions in the country. We are pleased to bring to a close the subsequent review of our strategic options in Russia. As part of the process, we conducted extensive due diligence to find the best possible buyer and future partner for our local employees – the safety and wellbeing of whom remain important to us. We feel that Espetina will be a good and committed owner for the business and the future of our employees,” said Charles Héaulmé, President and CEO, Huhtamäki.