Elopak will exit South Africa after agreeing to sell its 50% stake in Elopak South Africa (Pty) to Nampak for R115m (US$13.8m).
Nampak’s Liquid Packaging Division in South Africa will take full control of the group subject to approval by the authorities in South Africa, including the Competition Commission, which is expected to be completed this year.
Nampak said the business will now operate as part of their Liquid Packaging Division.
Elopak South Africa was established in 1999 as a joint venture between Nampak Liquid Packaging and Elopak AS.
Elopak confirmed that Pure-Pak cartons, which have been produced by Nampak as licensee in South Africa for more than 40 years, will continue to be produced and sold under a license agreement.
Market growth continuing
Graham Hayward, group investor relations and property manager for Nampak management services, told FoodProductionDaily.com he expected the South African market to continue growing.
“Nampak has a strategy of investing in its core businesses and an opportunity arose to acquire the remaining 50% in Elopak South Africa.
“We produce cartons for a variety of products such as juice and dry foods for example under the Tropika and SPAR brand names.
“There have been many innovations with possibly the introduction of the resealable closure being of particular note.”
Nampak revealed they were spending $350m in West Africa on acquisitions, beverage can lines, rigid plastics and closures from this year to 2014.
For 2013, $120m will be spent on projects in Angola and Mozambique including an acquisition, second can and closure line.
An Elopak spokesperson told this publication that their focus is in investment in other growth opportunities.
“When the sale is finalized Elopak will not have any operations within South Africa, however Nampak will continue to sell Pure-Pak cartons under license.
“We will continue our focus in Europe and Russia; following our investments in the new flagship plants in St Petersburg, Russia and in Mönchengladbach, Germany. We will also continue our focus in the Americas.”
“We have always had a good partnership with Nampak, but our focus is now in other growth opportunities. The main product highlight is the gable top carton for fresh liquids.”