Nampak seals deal to takeover Elopak JV

Nampak has announced that it has reached agreement with Norway’s Elopak of to acquire the remaining 50% shareholding which it currently holds in Elopak South Africa for R115 million. Elopak is a leading manufacturer of gable top paper cartons for fresh beverages and dry foods.

In line with Nampak’s strategy to invest in core businesses, 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.

Elopak South Africa was established in 1999 as a joint venture between Nampak Liquid Packaging and Elopak AS.

Elopak has 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.

Graham Hayward, group investor relations and property manager for Nampak management services, says he expects 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,” he comments.

Nampak has said it is 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 says its focus is in investment in other growth opportunities.

“When the sale is finalised, 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.”