Private equity firm to acquire Nampak businesses

Ethos Private Equity, a South Africa-based private equity firm, has entered into an agreement to acquire South Africa-based Nampak Ltd.’s tissue, corrugated and sacks divisions for $143 million. This agreement excludes Nampak’s 50 percent share of Sancella Proprietary Ltd.

The sale is part of Nampak’s strategy of focusing on its core product segments in South Africa and the rest of Africa. The divisions being sold do not fall under Nampak’s core business areas.

According to Ethos, the deal is expected to be complete by the second quarter of 2015.

In a statement, Ethos says that it is excited about the growth potential of the three businesses, particularly under independent ownership, and intends to support them with the required investment, resources and leadership capacity needed to achieve their potential.

Nampak Ltd. manufactures packaging products from metal, glass, paper and plastic in South Africa and the rest of Africa. The company also manufactures plastic bottles in the United Kingdom. Additionally, the company is heavily involved in collection and recycling initiatives throughout Africa.

Nampak has 58 operations in South Africa, 20 operations throughout the rest of Africa and nine operations in the U.K.