Staff Reports
Huhtamaki has acquired Zellwin Farms in an effort to support Huhtamaki’s growth within the molded fiber industry, specifically for egg cartons and egg flats.
“This acquisition is attractive for us as legislation in North America continues to shift packaging choices in the egg industry toward more renewable and recyclable options, such as molded fiber,” President Ann O’Hara of Huhtamaki North America said in a statement. “This acquisition will support our aspiration to be a leader in this category, deliver installed capacity to strengthen our manufacturing footprint, and help grow our excellent customer relationships.”
Zellwin Farms has been serving egg-producing customers throughout the southeastern United States from a single site for more than 20 years. The annual net sales of the acquired business is about $20 million. The transaction will benefit Huhtamaki with additional capacity and capabilities in molded fiber packaging.
“We have a clear focus on accelerating profitable growth through all levers,” president and CEO of Huhtamaki Ralf K. Wunderlich said. “Inorganic growth is an important tool for us, and we aim to do it in a disciplined manner in markets and geographies in which we are confident that we can create shareholder value. This margin-enhancing acquisition fits our criteria perfectly and is EPS accretive from year 1.”
Located at 6052 W. Jones Avenue in Zellwood, Zellwin Farms spanned 5,000 acres, according to the Florida Agricultural Hall of Fame. The late Zellwin Farms president and founder Kenneth “Ken” Jorgensen filed the business with the Florida Department of State in 1947.
Before his induction into the Florida Agricultural Hall of Fame in 1999, Jorgensen presided over the Florida Fruit and Vegetable Association, won the University of Florida’s Honor Society of Agriculture Merit Award, and served on the Zellwood Drainage and Water Control District.
