Amcor has acquired South African flexible packaging giant Nampak Flexibles and with it, market leadership in the region.
In combination with Amcor’s current business in Africa, the closing of this deal firms up Amcor's leadership position in the African market, with net sales in the region totalling AUD$372 million.
Nampak was reportedly in discussions with Amcor for more than a year before the sale was announced.
Nampak has extrusion, lamination and conversion capabilities, and the acquisition includes four manufacturing sites and one sales office in South Africa, generating net sales of close to AUD$125 million per annum.
Amcor chief executive and managing director Ken MacKenzie said the acquisition provided a platform for growth in the African region. Nampak Flexibles has an experienced management team and is the market leader in South Africa, servicing many of Amcor’s existing global customers.
“We now have the opportunity to leverage our product innovation and design capabilities into this market,” he said.
The flexible packaging industry is one of the highest growth segments of the packaging industry, driven by a rising global population and a worldwide middle class demanding more protein in their food.
Nampak's key markets are FMCG, wine, and industrial and medical sectors, and customers include British-Dutch giant Unilever, global food manufacturer Mars, and South African companies such as potato chip manufacturer Simba, which is part of the Pepsico group of companies.
Nampak joins the Amcor Flexibles team as a new business unit named Amcor Flexibles South Africa (AFSA).
AFEMEA president Peter Konieczny said Africa was “an exciting market” for Amcor Flexibles.
“Combining Amcor’s global footprint, innovation and R&D capabilities with Nampak Flexible’s reputation for service and quality in the African market will result in a flexible packaging business that will support Amcor’s profitable growth agenda in Sub-Saharan Africa,” he said.
“AFSA will provide customers with broader product and technology offerings, increased innovation and development capacity, and a more versatile manufacturing footprint in Africa. Going forward, customers will benefit from improved choice, quality, service and security of supply.”
