Lihel Ltd acquires Six Ltd.'s Business Operations
Lihel Ltd acquires the Finnish industrial flavourings company Six Ltd.'s business operations. The deal will reinforce Lihel's position in the industrial flavourings market and support the company's growth targets, particularly in Russia. The Six business operations will be transferred to Lihel on 1 March 2011. Due to the business hand-over, Six personnel will be transferred to Lihel. In connection with this, collaborative negotiations will be initiated.
The Industrial Flavourings Division of Paulig Group serves food industry customers in approximately 10 countries. It is also the industry's leading player in the Nordic countries. The Industrial Flavourings Division employs 107 people, and it has a turnover of approx. 37 million euros. Lihel is the Industrial Flavourings Division's subsidiary in Finland operating in Espoo. It employs a staff of 19 people. Six is based in Helsinki. The company employs 35 people, and it has a turnover of approx. 10 million euros.
“Acquiring the Six business will reinforce our position in the industrial flavourings market. According to our goals, the deal will create opportunities for growth particularly in Russia, where Six has a solid position,” Lihel 's Managing Director Dave Knaster says.
The purchase is valid on 1 March 2011. The parties have agreed that the purchase price will not be made public. From 1 March 2011, Six products will be sold under the Lihel brand. The possible future operating models and organisational structures will be planned during the collaborative negotiations to be started in the company.
Estimated Effects on Personnel
Combining of two organisations and their business operations is estimated to reduce at the most 32 persons. The collaborative negotiations will begin during week 10 and they concern 52 staff members.
“Both organisations include professionals who are extremely experienced in their field. This is why potential personnel reductions would be particularly painful,” Dave Knaster says.
For more information, please contact:
Lihel 's Managing Director Dave Knaster, +358 400 458 448 on 1 March 2011 at 2 - 3 pm
Paulig Group's Communications Director Anita Laxén, +358 40 770 0873, anita.laxen(at)paulig.com