Listed plastic and packaging producer Transpaco has finalised negotiations to purchase printed cartons producer Britepak Trading for R18,5-million, payable out of Transpaco’s resources, the group announced on Thursday.
The acquisition, which is still subject to the completion of a due-diligence investigation by Transpaco into Britepak, provides a vehicle for Transpaco to lessen its dependence on plastic-based materials.
Britepak supplies printed folded cartons, instruction leaflets, cut labels and general print for use in the pharmaceutical, health-care, cosmetic and hair-care industries.
“Britepak was identified due to its exceptional quality, customer profile and value-added niche market,” the plastics group said.
Transpaco is purchasing 100% of Britepak from the Dudley Leon Almarie and Audrey Trust, The Dad Family Trust, G Dada, F Davies, J Latter and D McLaughlin for R18,5-million, payable on the closing date.
The current Britepak management has entered into three- and five-year service contracts with the group, thus ensuing continuity of the group’s management, Transpaco said. No retrenchments from Britepak are being contemplated.
The effective date of the acquisition is March 1.
Transpaco extended its cautionary, adding that the group’s discussions regarding various black economic empowerment proposals are continuing. — I-Net Bridge