Nampak today announced that an agreement has been reached whereby it will acquire Alucan Packaging Limited which is a beverage can manufacturer based in Nigeria. Nampak has also been granted an option to acquire a leading rigid plastics company in Nigeria. The total investment is US$301 million and will be funded through available cash resources and existing debt facilities.
Nampak’s CEO, Andrew Marshall said ”this acquisition will significantly increase Nampak’s presence in Nigeria which is Africa’s second largest economy and where we already manufacture food and general cans in our factory in Lagos and cigarette cartons, food cartons and labels at our factory in Ibadan, 120 kilometres north of Lagos.
Beverage can manufacturing is one of Nampak’s core businesses with factories in South Africa and Angola. Nigeria with a population of over 150 million people has experienced good growth in demand for beverage cans and this is expected to continue. Plastic packaging is also a core business with factories throughout the African continent and the United Kingdom.
“This acquisition and the potential to acquire the plastics company will further contribute to our stated growth strategy in the rest of Africa where we currently operate in 12 countries generating R2.5 billion in annual revenue and almost 30% of our trading profit” Andrew concluded.
The transaction is subject to the fulfilment of certain conditions, including South African Reserve Bank approval.
