Nampak has announced an agreement to acquire Alucan Packaging Limited, a beverage can manufacturer based in Nigeria.
South Africa-based packaging group Nampak has also been granted an option to acquire a leading rigid plastics company in Nigeria, with total investments of US$301 million to be funded through available cash resources and existing debt facilities.
The Alucan factory in Nigeria is equipped with a brand new, state-of-the-art aluminium beverage can line capable of producing up to one billion cans per year.
It has also been designed and constructed to accommodate a second line once demand exceeds the current capacity.
The business is situated close to Lagos and to major beverage producing customers, as well as having a reliable source of gas.
Nampak CEO Andrew Marshall said: “This acquisition will significantly increase Nampak’s presence in Nigeria, which is Africa’s second largest economy and where we already manufacture food and general cans in our factory in Lagos and cigarette cartons, food cartons and labels at our factory in Ibadan, 120 km north of Lagos.”
Nampak currently operates in 12 African countries generating R2.5 billion in annual revenue and almost 30% of its trading profit.