South Africa gets investment boost for packaging industry
South African consumer packaging specialist Flexible Packaging Converters (Pty) Ltd has completed the sale of a 55% shareholding in the company to international acquirers Packages Ltd of Pakistan.
The acquisition strategy aims to transform Flexible Packaging Converters (FPC) into a top-tier packaging supplier in Africa, while offering the Pretoria-based firm access to significant international expertise and relationships to enhance local markets. It is the first time Packages Ltd has made an acquisition into Africa, and supports the current global trend of investing in South Africa with a view to entering the lucrative developing African market.
FPC managing director Wayne Hoffman said: “This is a significant international investment in South Africa’s packaging industry. This transaction will enable us to grow our domestic footprint, share our skills and knowledge, secure job prospects, and remain competitive. We look forward to working with our new partners.”
Packages have expressed interest in both organic and acquisitive growth as part of their strategy to become a formidable player in the packaging industry. The group, with revenues world-wide in excess of R2.5bn ($160m) , has shown significant confidence in the South African market and believes that the opportunities for growth in the country are particularly attractive. The opportunity to launch in Africa is also high on their agenda.
FPC was advised by BCMS Xigo, and director and transaction leader Gavin Scott added: “We are seeing more and more international corporations buying into and scaling up entrepreneurial and family-run South African business, which is very exciting. We have seen good M&A activity in the packaging industry recently; this positive trend in M&A activity is not sector specific though as we are seeing good activity generally. We wish FPC and Packages all the best as they grow from strength to strength.”