Nampak to Buy Nigerian Drinks Can Maker for $301 MillionJohn Bowker
Nampak Ltd., a South African packaging company, said it will buy closely-held Nigerian drinks-can maker Alucan and has an option to purchase a plastics manufacturer in a $301 million deal to expand in Africa’s most populous country.
“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,” Chief Executive Officer Andrew Marshall said in a statement today.
Nampak also said it was considering an expansion of its Angola beverage can factory with a second line. Investment in the entire plant, including the existing facility, will probably be about $250 million, the company’s regional head Tim Leaf-Wright told reporters on Nov. 14.
Nampak wants to expand in faster-growing African economies to help offset slower economic expansion in its home South African market, the Johannesburg-based company said last November. Its shares increased 2.6 percent to 31.56 rand as of 9:50 a.m. in Johannesburg, paring a 2013 decline to 0.9 percent.