S.Africa's Nampak buys Nigerian can manufacturer

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Nampak Limited agreed to pay 301 million US dollars to buy a Nigerian beverage can manufacturer.

The million dollar deal also included the option to purchase a plastic packaging facility.

The acquisition of Alucan Investment Ltd forms part of the packaging firm’s stated intention to boost sales from outside its home market.

[DATA NPK:NAMPAK LTD.] has said it aims to grow its sales contribution from the rest of Africa to 35 per cent from about 20 per cent now.

Under the deal, Nampak has a 10-year option to buy a related company involved in rigid plastic packaging in Nigeria, if and when the owner decides to sell.  

The company also said it was considering the expansion of its Angolan can manufacturing facility to meet growing demand in the oil-rich southern African country.

Alucan Investments Ltd makes cans for the beer, malt and the soft drink industry with the capacity to make 1.1 billion cans per year.

Shares in Nampak rose 3.5 percent to 31.83 rand, outpacing a 0.4 percent rise in the JSE All-share index.