Constantia Flexibles Group is strengthening its position in the Sub-Saharan African growth market by acquiring the South African flexible packaging company Afripack, subject to regulatory approvals.
Durban-based Afripack is the second-largest flexible packaging company in South Africa and Sub-Saharan Africa, producing flexible food packaging and labels for the domestic market and some African countries.
Afripack’s sales totalled sales of about EUR103m in the year ended September 2014. It has about 1,150 employees and operates six plants in South Africa and one each in Kenya, Zimbabwe and Mauritius.
“We are entering a market with tremendous potential and both companies will strengthen our ties to our blue-chip, multinational customer base,” said Friedrich Humer, executive vice president food emerging markets of Constantia Flexibles. “We look forward to joining forces with both companies’ dedicated workforce and strengthen our footprint in Africa.”
“This is the perfect transaction for the 82-year-old Afripack,” said Afripack CEO Arnold Vermaak.
“We focus on flexible packaging and our vision has been to become Africa’s preferred supplier. Constantia’s global presence and flexible packaging expertise makes them the perfect owner for us. Many of our multinational customers are expanding into Africa and will be very supportive of this transaction.”
Constantia plans to expand its presence in Africa as part of its overall global growth strategy. Demand for flexible packaging in Africa has been exceeding local production by 4-5% per year over the past five years.
