Huhtamaki Oy, a Finnish multi-branch firm sold Leiras Oy, its pharmaceutical unit, to the German firm Schering AG. Last winter Huhtamaki announced that it had plans to leave the pharmaceutical business and to concentrate on the confection and packaging sectors, and therefore the selling of Leiras was not a surprise.
Leiras had a turnover of 191 million U.S. dollars last year and this equalled 11 per cent of Huhtamaki's total turnover of around 1,76 billion U.S. dollars. The sale price was 318 million U.S. dollars including Leiras's debts, which by experts is considered to be a good price. In connection with this sale Huhtamaki will buy, and redeem, the ten per cent share of Huhtamaki that the Swedish-American firm Pharmacia & Upjohn currently owns.
In recent years the global pharmaceutical business has seen major concentrations, as shown by the fact that of the 40 largest firms a year and a half ago only 20 remain today. Therefore Leiras had to be teamed up with a global giant to have a chance to survive in the future. Overall, the selling is a very good deal both for Huhtamaki and for Leiras. Huhtamaki will now have a chance to make a good result by focusing on its two remaining sectors, confection and packaging, and Leiras will be able to compete globally.
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