Ethos to Acquire Nampak's Tissue, Other Paper Divisions

Ethos Private Equity, South Africa, has agreed to acquire Nampak’s (South Africa) tissue, corrugated, and sacks divisions for a total purchase price of ZAR 1.6 billion (approximately $143 million). The acquisition does not include Nampak’s 50% shareholding in Sancella Proprietary Ltd.

 

For some time, Nampak has had a stated strategy of focusing on core product segments in South Africa and the rest of Africa, and these three divisions do not form part of this focus, the company noted. The transaction is subject to several conditions, including various demerger and supply arrangements with Nampak and approval by the competition authorities.

 

As the consumer division within the Nampak Group, the tissue division supplies many South African households with high quality tissue products, which include the Twinsaver, Cuddlers, Lifestyle, and Tena.brands. In addition, the division has a specialized away-from-home division providing washroom solutions to the commercial and industrial sectors. Its South Africa tissue production operations are in Johannesburg and Pietermartizburg.

 

The effective date of the transaction is expected to be in the second quarter of 2015. On conclusion of the transaction, it is envisaged that the re-branded businesses will continue to be managed autonomously.