Constantia Flexibles Group is strengthening its position in the sub-Saharan African growth market by acquiring Afripack.
Durban-based Afripack is said to be the second largest flexible packaging company in South Africa and the sub-Saharan Africa. The company produces food packaging and labels for the domestic market and selected African export countries.
It achieved sales of approximately €103 million in the financial year ended September 2014 and currently has around 1 150 employees. It operates six plants in South Africa and one each in Kenya and Mauritius.
‘We are entering a market with tremendous potential and both companies will strengthen our ties to our blue-chip, multinational customer base,’ says Friedrich Humer, executive VP of Food Emerging Markets for Constantia Flexibles (Constantia). ‘We look forward to joining forces with Afripack’s dedicated workforce and strengthening our footprint in Africa.’
Arnold Vermaak, CEO of Afripack adds: ‘This is the perfect transaction for the 82-year-old Afripack. We focus on flexible packaging and our vision has been to become the continent’s preferred supplier.’ He notes that Constantia’s global presence and flexible packaging expertise makes them the perfect owner for Afripack.
Constantia plans to expand its presence in Africa in the coming years as part of its overall global growth strategy. The African continent is one of the fastest-growing markets for flexible packaging. Demand is said to be being driven by the urbanisation megatrend, ongoing investments by multinational companies, a wealthier middle-class and an expanding retail markets.
Constantia is already located in South Africa through its Johannesburg site, which produces labels for international drinks manufacturers. Some 100 employees work at the site.
Afripack and Constantia agreed not to disclose the price of the transaction, which is subject to regulatory approvals and is expected to close in the next three months.