South African packaging company Nampak announced last week that it is set to buy Alucan Packaging, a Nigerian beverage can manufacturer, in a deal worth $301 million.
In a statement Nampak said the Alucan factory is equipped with "a brand new, state-of-the-art aluminium beverage can line" capable of producing up to "one billion cans per annum".
It has also been designed and constructed to "accommodate a second line once demand exceeds the current capacity".
Nampak's CEO, Andrew Marshall said, "This acquisition will significantly increase Nampak's presence in Nigeria which is Africa's second largest economy and where we already manufacture food and general cans in our factory in Lagos and cigarette cartons, food cartons and labels at our factory in Ibadan, 120 kilometres north of Lagos."
Alucan Packaging is situated in the Agbara industrial area which Nampak said was "an ideal location" close to Lagos and to major beverage producing customers as well as having "a reliable source of gas which will be used for heating and power generation".
"Beverage can manufacturing is one of Nampak's core businesses with factories in South Africa and Angola," said Marshall. "Nigeria with a population of over 150 million people has experienced good growth in demand for beverage cans and this is expected to continue. Plastic packaging is also a core business with factories throughout the African continent and the United Kingdom.
"This acquisition and the potential to acquire the plastics company will further contribute to our stated growth strategy in the rest of Africa where we currently operate in 12 countries generating R2.5 billion in annual revenue and almost 30 percent of our trading profit."
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