Johannesburg-based packaging specialist Nampak has agreed to sell its European business, Nampak Plastics Europe (NPE), to UK investment company Bellcave Ltd.
The terms and conditions of the transaction have not been disclosed.
According to Nampak CEO André de Ruyter, the divestment of NPE is in line with the South African group’s ongoing strategy to sharpen its focus on “strategic substrates” and rationalise the company’s portfolio to improve capital returns.
As part of the strategy, Nampak sold its cartons production arm in Nigeria to Sweden’s AR Packaging in April 2019.
At the end of August, Nampak designated NPE as an ‘asset held for sale’. A final agreement was reached on 12 Dec with Bellcave, which is owned and backed by London-based private investment company Greybull Capital, which specialises in medium- to long-term investments.
The sale is effective immediately and includes the pension fund liability.
NPE manufactures and supplies high density polyethylene (HDPE) packaging to the UK dairy sector.
The company is reported to hold a 34% share of the available UK milk bottle market, supplying to key players in the UK and Ireland dairy industries.