Huhtamaki Divests Brazil, Argentina Units

Finland-based packaging products company Huhtamaki says it is selling its rigid plastic consumer goods business in Brazil to Dixie Toga and in Argentina to American Plast for a total of $42.5m. The buyers are both units of Bemis, a US-based packaging products manufacturer. Bemis says the purchase price was paid with a combination of the equivalent of $32.3m cash on hand, $1.9m of debt assumed, and an $8.8m note payable to the seller due May 31 2010. Huhtamaki says that the units have annual sales of about $86m. It adds that it will continue to operate its flexible and rough molded fiber packaging units in South America.