CTP has received the backing of the Competition Commission (CompCom) to acquire two of Amcor Flexibles South Africa’s operations.
CTP is a subsidiary of Caxton Publishers and Printers Limited, which in turn is a subsidiary of JSE-listed Caxton and CTP Publishers and Printers Limited.
The acquisition of Amcor Cape Town Bag in Box and Pouching operations and of Amcor Port Elizabeth, valued at R90 million, was implemented with effect from 1 August.
Caxton revealed, in a Sens statement issued on Wednesday, that the acquisition was approved by the competition authority without conditions at the end of July 2022.
“The Amcor operation in Cape Town produces bag-in-a-box bladders and is a complementary natural fit with the CTP cartons operation in Epping that produces bag-in-a-box cartons for the wine industry, a sector which is showcasing increasing growth,” it adds.
Caxton says another benefit is that the Amcor Cape Town factory is almost adjacent to CTP’s flexibles business in Ndabeni.
“The Amcor operation in Port Elizabeth (Gqeberha) extrudes film, slits and embosses liners for the automotive tyre industry and has produced consistent results for the past few years.”
Caxton says a preliminary review of the acquisition confirms its initial assessment that the transaction will complement its existing businesses and add value to the company.
It says operational integration is already under way and is showing pleasing prospects.
The newspaper company indicated the acquisition forms part of its strategic intent to further its footprint in the South African packaging landscape.
“The CTP packaging portfolio has experienced recent pleasing growth and this acquisition, together with increases in wet-glue beer label demand and other innovations in folding cartons, is expected to contribute a substantial increase in CTP’s turnover in the packaging division in the next financial year.”
Nondumiso Lehutso is a Moneyweb intern.