(Ecofin Agency) - South African packaging manufacturer Nampak Limited has sold its London subsidiary Nampak Plastics Europe Limited (NPE), which supplies packaging for the UK dairy sector, following difficulties. According to the parent company, the price of recycled materials used to manufacture packaging for the dairy industry increased sharply while sales volume in the United Kingdom declined and the business environment got tougher.

In August 2019, the Board of Directors approved the decision to sell NPE and Nampak later agreed to sell it to the British firm Bellcave Limited, supported by the investment group Greybull Capital. The amount of the transaction was not disclosed.

This sale of NPE comes a few months after the sale of Nampak Glass, Nampak's South African subsidiary specializing in the manufacture of glass containers, and the sale of the Nigerian subsidiary specializing in paper packaging. According to André de Ruyter, Nampak's CEO, the sale of NPE is part of the South African firm's strategy to rationalize its portfolio to optimize and improve returns on capital.

Chamberline Moko