South Africa’s Nampak has entered into an agreement to sell its Tissue, Corrugated and Sacks divisions for approximately EUR 115 million to Ethos Private Equity.
The move is primarily influenced by the company’s strategy to focus on core product segments in South Africa and the rest of Africa.
“During the year we took a critical look at our business and put in place various overhead cost management and business improvement programmes. Active portfolio management continues to be a theme, with an agreement reached shortly after year end on the disposal of the South African Corrugated, Sacks and Tissue divisions for an amount of ZAR 1.6 billion,” said, André de Ruyter, CEO, Nampak.
Ethos stated that the company is keen on exploring the growth potential of the three business divisions and is willing to invest resources to achieve the expected goal.
The effective date of the transaction is expected to be in the second quarter of 2015.
