Nampak has bought the Alucan Packaging beverage can operation in Nigeria.
The South Africa-based company paid $301m for the company and has also been granted an option to acquire a leading rigid plastics firm in Nigeria.
In the Agbara industrial area, near Lagos, the Alucan factory has a new, state-of-the-art aluminium beverage can line capable of producing up to 1bn cans per year, according to Nampak.
The plant has also been designed to accommodate a second line once demand exceeds current capacity.
Its location at Agbara puts the facility close to major beverage producing customers as well as a reliable source of gas for heating and power generation.
Nampak’s CEO, Andrew Marshall, said the purchase will “significantly increase Nampak’s presence in Nigeria”.
Nigeria is Africa’s second largest economy and Nampak already makes food and general cans at Lagos and cigarette cartons, food cartons and labels at Ibadan, 120km north of Lagos, he added.
Beverage cans are a core business for Nampak, with plants in South Africa and Angola. Demand for beverage cans from Nigeria’s population of over 150m people has grown fast and is expected to continue rising.
“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 R2.5bn [$248m] in annual revenue and almost 30% of our trading profit,” said Marshall.