27 November 2013
South African packaging company Nampak announced last week that it is set to acquire Alucan Packaging, a Nigerian beverage can manufacturer, for US$301-million.
According to Nampak, Alucan’s factory is equipped with a state-of-the-art aluminium beverage can line capable of producing up to one-billion cans per annum, and can accommodate a second line once demand exceeds the current capacity.
The factory is situated in the Agbara industrial area close to Lagos and major beverage-producing customers, and has a reliable source of gas for heating and power generation.
Nampak CEO Andrew Marshall said the acquisition would significantly increase Nampak’s presence in Nigeria, where the company manufactures food and general cans at a factory in Lagos and cigarette cartons, food cartons and labels at a factory at Ibadan, 120 kilometres north of Lagos.
“Beverage can manufacturing is one of Nampak’s core businesses, with factories in South Africa and Angola,” Marshall said in a statement. “Nigeria, with a population of over 150-million people, has experienced good growth in demand for beverage cans, and this is expected to continue.”
“Plastic packaging is also [our] core business, with factories situated throughout Africa and the United Kingdom,” Marshall added. The company also has an option to also buy a leading rigid plastics company in Nigeria.
“This acquisition, and the potential option to buy the plastics factory, will further contribute to our 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.”