Sappi sells Johannesburg recycled packaging mill to Golden Era Group

Sappi Limited headquartered in Johannesburg, has announced it is selling its Cape Kraft recycled packaging paper to South Africa’s Golden Era Group. The company had also recently announced the sale of its Enstra mill and recycled packaging business.

The transaction, initiated in March 2015, is expected to close in September 2015. Sappi says it will receive just short of R600 million (US$48.5 million) from the two transactions.

Commenting on the transaction, Sappi Southern Africa CEO Alex Thiel says, “The sale of the Cape Kraft and Enstra mills and the recycled packaging paper business is in line with Sappi Southern Africa’s strategy to unlock value from noncore assets and free up resources for investment in dissolving wood pulp, virgin containerboard and other new business opportunities. The sales also support the Sappi Limited strategy to strengthen the group’s balance sheet and focus on high-growth opportunities.”

Golden Era Group CEO Kishor Chhita remarks, “We are very pleased to be able to acquire this top quality asset from Sappi. It will strengthen our position in the market as a service-oriented company that offers packaging solutions and will further help us to achieve our goal of creating lasting team-based partnerships with our customers.”

Golden Era Group, started in 1955, is among the largest printing and packaging companies in South Africa. The group specializes in the manufacturing of kraft paper, corrugated cases, folding cartons, notestiks, paperbags, self-adhesive and IML labels, shrink sleeves, three-piece metal cans, and vacuum-formed and thermos-formed packaging.