Nampak in $301m Alucan Packaging deal

By Jenny Eagle

- Last updated on GMT

Beverage can manufacturing is one of Nampak’s core businesses.
Beverage can manufacturing is one of Nampak’s core businesses.

Related tags Africa

Nampak will acquire beverage can manufacturer Alucan Packaging for $301m, in Nigeria, with an option to buy a rigid plastics company in the country.

Alucan Packaging has an aluminium can line which can produce up to $1bn cans a year. It has been designed and built to accommodate a second line, once demand exceeds capacity.

The business, in the Agbara industrial area, is close to Lagos, with a reliable source of gas for heating and power generation.

Graham Hayward, group investor relations and property manager, Nampak Management Services, told FoodProductionDaily the transaction is subject to fulfillment of conditions precedent.

Regional presence

We expect the deal to be finalized in the first half of our 2014 financial year so we have no announcement to make on jobs at this stage​,” he added.

Andrew Marshall, CEO, Nampak said the acquisition will increase its presence in Nigeria, where it already manufactures food and general cans at its factory in Lagos and cigarette and food cartons, and labels, at a facility in Ibadan, 120km north of Lagos.

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​,” said Marshall.

Beverage can manufacturing is one of Nampak’s core businesses with factories in South Africa and Angola.

The company said it will fund the acquisition through available cash resources and existing debt facilities.

The transaction is subject to the fulfilment of certain conditions, including South African Reserve Bank approval.

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