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US can maker seeks to acquire troubled Hungarian peer for €14m

US-based extruded aluminium can maker Exal Corporation has reached an agreement to acquire troubled Hungarian peer Szenna Pack for €14m and pay off some of its debts, consultancy KPMG Hungaria said on Tuesday.

Family-owned Szenna Pack filed for bankruptcy protection in July because of a poorly-timed investment.

Since then, Exal Corporation has agreed to buy Szenna Pack, take care of unpaid wages and bills, and repay 50-75% of loans backed by collateral and 10% of loans without collateral. The American company wants to continue production at Szenna Pack and keep its 120 workers.

If the deal is approved by the court, Exal Corporation could move some production of its European unit Boxal to Hungary.

Boxal wants to triple Szenna Pack’s output, focusing mainly on exports, and hire another 180 workers over three years, KPMG Hungaria said.