Nampak to sell Nigerian carton business
Nampak Limited, the South Africa-based packaging company with footprints in 11 African countries said it has reached an agreement with AR Packaging Group AB, a Swedish cigarette pack maker to sell Nampak Cartons Nigeria, a producer of high quality folding carton products for the tobacco, food and consumer goods segments.
According to the company, Nampak Cartons Nigeria based in Ibadan, Oyo State is one of the leading carton packaging companies in the country and serves a broad market of primarily multinational customers in the tobacco and food segments.
The company which employs 200 people was established in 2004.
“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.
However, the company said it will keep its aluminum and tin canning business in Nigeria.
The sale of the Nigerian carton business is subject to customary closing conditions, including local regulatory approvals. The parties to the transaction have agreed that no financial details will be disclosed.