The intermediate merger, where Amcor Flexibles South Africa (AFSA) plans to get hold of Nampak’s flexible packaging business, is set to be realized. This is facilitated by the approval, without conditions, of the South Africa Competition Commission.
After the acquisition, Amcor will have sole control over Nampak Flexibles, South Africa’s market leader in flexible packaging. This acquisition is worth USD 22 million (ZAR 250 million).
The Amcor Acquisition will generate a Lot of Interest Among the Flexible Packaging Industry
The news of this merger has created a lot of interest in the profile of both these companies. Amcor is a multinational packaging company, with a worldwide presence in 43 countries, across over 180 sites.
It is a leading name in responsible global packaging solutions.
It supplies a variety of flexible and rigid packaging products for the healthcare, food and beverage, heat sealer packaging as well as home and personal care industries.
Nampak Flexibles has three plants with extrusion, conversion and lamination capabilities. It manufactures, prints, sells and distributes a variety of flexible packaging products in South Africa.
The approximate sales figure of the company per annum stands at USD 94 million (ZAR1.1 billion).
Nampak Flexibles serves clients across different industries. These include domestic and leading multi-national customers in the food and beverage, pharma/healthcare, and home care end markets.
Its products are also exported to other African countries.
According to Amcor’s M.D and CEO Ken MacKenzie, this merger will give the African region a platform for growth. In a statement in March, he lauded Nampak’s experienced management team and said the company is the market leader in South Africa.
He added how the company services several existing global customers of Amcor. This, he said, creates an opportunity to leverage Amcor’s design and product innovation capabilities into the market.
Nampak’s CEO – André de Ruyter, said in a statement that the disposal of its flexible packaging business was a part of Nampak’s portfolio optimization plan. He said the move was aimed to unlock cash from low-margin business and redistribute it into high-growth and high-yield opportunities in the rest of Africa.
Though Nampak Flexibles is profitable, with margins varying between 3% and 4%, it’s nowhere close to Nampak’s margins for other African businesses, which are between 18% and 20%.
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