Ethos Private Equity has agreed to acquire Nampak's paper business on behalf of the Ethos Fund IV.
The transaction, which is subject to certain conditions, includes Nampak's tissue, corrugated and sacks divisions.
Nampak manufactures and sells metal, glass, paper and plastic packaging products in South Africa, the UK, Angola and internationally.
It offers corrugated boxes, folding cartons, labels, multi-wall sacks, pouches, self-opening bags and cigarette, food and beer cartons, as well as plastic, paper and aluminum laminations. It also offers plastic products, such as HDPE bottles, closures, liquid packaging cartons, crates, drums, PET bottles and tubes.
Expected to be completed in the second quarter of 2015, the acquisition does not cover Nampak's 50% shareholding in Sancella Proprietary.
Nampak said that the proceeds of the transaction will be used in its expansion plans in the rest of Africa.
The company claims that its African operations outside of South Africa currently accounts for 30% of total group profits.
Nampak CEO André de Ruyter said: "Nampak had a strong 2014, marked by continued delivery on our ambitious strategy to unlock further value from our base business and accelerate growth in the rest of Africa.
"The contribution to trading profit of operations in the rest of Africa increased to 30% from 26% in 2013."
Image: Nampak offers corrugated boxes, folding cartons, labels, multi-wall sacks and pouches. Photo: courtesy of ntwowe / FreeDigitalPhotos.net.