Finnish packaging producer Huhtamaki (Espoo; www.huhtamaki.com) is to acquire privately owned foils and labels producer Fiomo (Prague / Czech Republic; www.fiomo.com) for around EUR 28m. The company said that the acquisition will expand its footprint in eastern Europe and allow it to offer high quality offset printing capabilities for smaller production runs.

The annual sales of the acquired business in 2014 were around EUR 2m. It employs 120 people at its manufacturing unit in Prague. The unit will become part of Huhtamaki’s flexible packaging business segment.

Olli Koponen, Huhtamaki’s executive vice president, flexible packaging, said: “I am pleased to announce this addition in our flexible packaging manufacturing network. European flexible packaging market is experiencing a positive momentum, with increasing versatility in customers’ needs. Fiomo’s manufacturing capabilities complement our offering and ensure better resourcing and faster response when serving our customers across Europe.”

The transaction is expected to be completed in early 2016.