Nampak Limited has entered into a definitive agreement with AR Packaging Group AB for the disposal of its wholly-owned subsidiary Nampak Cartons Nigeria – a producer of high-quality folding carton products for the tobacco, food and consumer goods segments at an undisclosed amount.
Nampak Cartons Nigeria is one of the leading carton packaging companies in Nigeria. The company serves a broad market of primarily multinational customers in the tobacco and food segments from its production facility in Ibadan, Oyo State. Currently, the company employs approximately 200 personnel. Nampak Cartons Nigeria was established in 2004 by a subsidiary of Nampak Limited, the Johannesburg Stock Exchange-listed African packaging company with 49 facilities worldwide.
“The disposal of the Cartons business in Nigeria is in line with Nampak’s ongoing strategy to sharpen our focus on strategic substrates. We continue to rationalise the portfolio to improve returns on capital and reinforce our strategic intent. Proceeds from this disposal will further strengthen the company’s financial position.” said Nampak CEO, André de Ruyter.
The disposal is subject to customary closing conditions, including local regulatory approvals. The parties to the transaction have agreed that no financial details will be disclosed.
Nampak has retained it’s aluminium and tin canning products and services in Nigeria.
André de Ruyter, Nampak’s chief executive, said the disposal of the packaging business in Nigeria was part of the group’s ongoing strategy to sharpen its focus on strategic underlying businesses
“We continue to rationalise the portfolio to improve returns on capital and reinforce our strategic intent. Proceeds from this disposal will further strengthen the company’s financial position,” De Ruyter said.
Nampak, which is the leading packaging group in Africa with a presence in eleven African countries, said the disposal was subject to customary closing conditions, including local regulatory approvals.
Established in 2004, Nampak Cartons Nigeria has a production facility in Ibadan, Oyo State, Nigeria, employing 200 people.
Nampak, in the update, revealed that the macroeconomic environment in South African gross domestic product slowed down to 0.8percent in 2018, even though the last two quarters in 2018 had positive growth.
