The effective date for the sale of the Nampak Carton and Labels division from packaging company [DATA NPK:Nampak Limited] to one of South Africa’s largest publishers, Caxton, is set for the 1 August 2014.
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[DATA CAT:Caxton and CTP Publishers and Printers Limited] stated that the transaction reflects the increasing strategic importance of the packaging division within Caxton.
The group added that turnover from these divisions have been on an upward trend, from 677 million rand in 2012, 764 million rand in 2013 to 927 million rand in 2014.
“This acquisition will afford Caxton an even greater opportunity to expand its packaging offerings and to benefit from economies of scale. As a result of the acquisition, packaging turnover for the following year is expected to exceed 2 billion rand,” said Caxton in a statement.
The company also explained that Nampak Cartons and Labels are a significant player in the South African market and that the division manufactures packaging for a wide range of customers, from cigarette cartons for [DATA BTI:British American Tabacco Plc] to wet glued beer labels for [DATA SAB:SABMiller Plc].