South African packaging manufacturer Nampak has sold its glass business to Isanti Glass 1 and SABSA, a local subsidiary of beer maker AB InBev (AB InBev), for approximately 1.5 billion ZAR.
Nampak representatives has previously stated that selling the glass business would enable the company to focus on the metals business, which generates more than 60 percent of the company’s trading profit.
In its 2018 annual report, Nampak announced their decision to dispose of the glass business to improve the company’s financial performance. Other steps included reducing overhead costs and consolidating plastic plants.
The transaction is subject to various conditions including the approval of SA competition authorities, but company representatives said, “It is not anticipated that the suspensive conditions will have been met before the Nampak 30 September 2019 year-end.”
Nampak Glass operates three furnaces at its manufacturing facility in Roodekop, Gauteng. It has a sales and marketing presence in the Western Cape. The division serves a broad market of local and multinational customers in the beverage and food industries.
Isanti Glass 1 is 60 percent owned by investment firm Kwande Capital, while SABSA Holdings owns the other 40 percent. Kwande, which was established in 2010, focuses on investing in companies with high growth potential in sectors such as manufacturing, oil and gas.
SABSA is the holding company of SA Breweries and a wholly owned indirect subsidiary of AB InBev.