Afripack is the second-largest flexible packaging company in South Africa and sub-Saharan Africa. It produces flexible food packaging and labels for the domestic market, as well as for selected African export countries.
Afripack achieved sales of approximately 103 million euros in the financial year ended September 2014 and currently has around 1150 employees. It operates six plants in South Africa and one each in Kenya and Mauritius.
"We are entering a market with tremendous potential and both companies will strengthen our ties to our blue-chip, multinational customer base," said Friedrich Humer, Executive Vice-President Food Emerging Markets of Constantia Flexibles. "We look forward to joining forces with Afripack's dedicated workforce and strengthening our footprint in Africa."
"This is the perfect transaction for the 82-year-old Afripack. We focus on flexible packaging and our vision has been to become Africa's preferred supplier," said Arnold Vermaak, CEO of Afripack. "Constantia's global presence and flexible packaging expertise makes it the perfect owner for us. Many of our multinational customers are expanding into Africa and will be very supportive of this transaction. A win-win all round."
Constantia plans to expand its presence in Africa in the coming years as part of its overall global growth strategy. The African continent is one of the fastest-growing markets for flexible packaging. Demand is being driven by the megatrend urbanisation, ongoing investments by multinationals, a wealthier middle class, and an expanding retail market.
Constantia Flexibles is already located in South Africa through its Joburg site, which produces labels for international drinks manufacturers and has some 100 employees.
