South Africa’s Nampak has agreed to buy Nigerian beverage can manufacturer Alucan Investments for US$301mn as part of its plan to expand its reach outside its home market
Alucan Investments, which is situated in the Agbara industrial area near Lagos, makes cans for the beer, malt and the soft drink industry with a capacity to produce 1.1 billion cans per year.
According to Reuters, Johannesburg-based Nampak said it also has an option to buy a subsidiary of Alucan Investments, a rigid plastic packaging unit, at a later date.
Nampak expects a sales growth of 35 per cent in markets outside of South Africa in the near term, following the acquistion of Alucan Investments.
The company's chief executive officer Andrew Marshall said, "This acquisition will significantly increase Nampak’s presence in Nigeria where we already manufacture food cans, along with cigarette cartons, food cartons and labels at a factory in Ibadan. This acquisition, and the potential to acquire the plastics company will further contribute to our growth strategy in rest of Africa."
The company has announced that it was considering expanding its Angolan can manufacturing facility to meet the growing demand in the southern African country, the news agency reported.