Spring, as we know, is mating time. Further evidence of this natural phenomenon is provided by the considerations being undertaken by the Finnish food and packaging group Huhtamaki Oyj (Länsituulentie 7, PIN-02100 Espoo) to submit an offer to take over all shares of Royal Packaging Industries Van Leer N.V. (P.O. Box 25, NL-1180 AA Amstelveen). At NRG 62 per share, the offer is well above the closing rate of May 3, 1999. Van Leer confirmed receipt of the unsolicited offer, saying that talks would be initiated with Huhtamaki, and that no further comment could be made before the discussions were completed. If the acquisition goes through, it will generate one of the world´s biggest companies in the packaging industry. A joint corporation would be present in 55 countries and have total sales of nearly EUR 3bn.

Huhtamaki, which had just announced the sale of its food activities, owns the European Polarcup Group and the American firm, Sealright Co Inc. The company´s packagings sector has a workforce of 7,000 and posted sales in 1998 of approx. EUR 720m. The product portfolio covers plastic and paper cups, beakers, trays and other thin-wall products for foodstuffs. Apart from the companies operating under the Van Leer name, the Van Leer Group also owns, among others, the 4P Verpackungsgruppe (Germany: Ulmer Str. 18, D-87437 Kempten). Van Leer manufactures flexible packagings, films and coatings, beakers and one-way cutlery for the consumer segment, as well as drums, plastic bottles and closure systems for the industrial segment. In 1998, Van Leer recorded sales of over EUR 2bn with 15,000 employees.

READER SERVICE: Further detailed information from Huhtamaki on the takeover bid (English): PIE-No. 43737 – Basic information on Polarcup and Sealright (English): PIE-No. 43738 – Company profile Van Leer (German): PIE-No. 43739 – Collection of “Interpack” press releases (German, with pictures) Van Leer: PIE-No. 43740.