Sweden-based AR Packaging Group has agreed to acquire Nampak Cartons Nigeria for an undisclosed sum.
AR Packaging has signed an agreement with a subsidiary of Nampak to purchase all outstanding shares in Nampak Cartons Nigeria, which produces folding carton products for the tobacco, food and consumer goods segments.
The company operates a production facility in Ibadan of Oyo State to serve a range of multinational customers in the tobacco and food segments.
Nampak CEO André de Ruyter said: “The disposal of the Cartons business in Nigeria is in line with Nampak’s ongoing strategy to sharpen our focus on strategic substrates.”
Nampak Cartons Nigeria, which employs around 200 people, was established in 2004 by a subsidiary of Nampak.
Nampak, an African packaging company listed on the Johannesburg Stock Exchange, operates 45 facilities across the world.
Completion of the acquisition is subject to customary closing conditions, including local regulatory approvals, said AR Packaging.
AR Packaging president and CEO Harald Schulz said: “With the acquisition of Nampak Cartons Nigeria, we have taken an important first step towards establishing a footprint in the African market.
“We are very pleased to have found such a competent partner for our global growth ambitions, and we will now be able to serve our multinational customer base on three continents.”
In December 2018, AR Packaging Group has acquired Croatia-based folding carton products maker Istragrafika for an undisclosed value.
Based in Kanfanar, Istragrafika provides folding cartons to various industries, including tobacco, food and consumer goods.
Based in Lund, AR Packaging is a group of companies such as A&R Carton, Flextrus, CC Pack, SP Containers and AR Packaging Digital.
With net sales of around €600m, the group employs 3,300 people and operates 19 factories in 11 countries.
With around 5, 600 employees, Nampak produces world-class metal, glass and rigid plastics packaging at its facilities located in 11 countries across Africa, as well as the UK and Ireland.