Huhtamaki acquires Zellwin Farms Company to enhance its capabilities in the molded fiber packaging industry, particularly in producing egg cartons and flats, with an investment valued at USD 18 million.

Target Information

Huhtamaki has successfully acquired Zellwin Farms Company, a privately-held entity based in Zellwood, Florida, USA. This acquisition, valued at USD 18 million, aims to enhance Huhtamaki’s presence in the molded fiber sector, specifically focusing on the production of egg cartons and egg flats. As a company with over 20 years of experience, Zellwin Farms caters to egg producers across the Southeastern United States, generating annual net sales of approximately USD 20 million. The acquisition is expected to contribute to Huhtamaki’s operational capacity and capabilities in molded fiber packaging.

Industry Overview

The molded fiber industry is witnessing a significant transformation driven by increasing demand for renewable and recyclable packaging solutions, particularly in North America. Legislative changes are influencing egg producers to transition from traditional packaging materials to sustainable options, such as molded fiber. This shift is not only environmentally conscious but also aligns with consumer preferences for sustainable products.

In the Southeastern United States, where Zellwin Farms operates, the egg production sector is robust and continues to thrive. As the market evolves, producers are faced with the challenge of adopting packagin