AR Packaging Group has signed a definitive agreement with a subsidiary of South African packaging firm Nampak to purchase all outstanding shares in its subsidiary.

Established in 2004, Nampak Cartons Nigeria produces folding carton products for the tobacco, food and consumer goods segments.

The company currently employs around 200 personnel and serves customers in the tobacco and food segments through its production facility in Ibadan, Oyo State.

The transaction is currently subject to customary closing conditions, including local regulatory approvals. Terms of the deal were not disclosed.

AR Packaging president and CEO Harald Schulz said: “With the acquisition of Nampak Cartons Nigeria, we have taken an important first step towards establishing a footprint in the African market.

“We are very pleased to have found such a competent partner for our global growth ambitions, and we will now be able to serve our multinational customer base on three continents.

“We will now be able to serve our multinational customer base on three continents.”

“Together with the highly experienced management team of Nampak Cartons Nigeria, we are convinced that we will be able to deploy true growth opportunities in Nigeria and more broadly in Africa.”

AR Packaging currently employs 3,300 people across 19 facilities in 11 countries. It offers carton-based and flexible packaging solutions to customers.

The group includes various specialised companies such as A&R Carton, Flextrus, CC Pack, SP Containers and AR Packaging Digital.

In January, the company closed the acquisition of all outstanding shares in folding carton products maker Istragrafika for an undisclosed value.