In a statement on Friday, packaging group Nampak [JSE: NPK] said it has entered into a R1.5bn deal to sell its glass business.
Nampak Glass primarily manufactures beer, spirits and wine bottles, as well as water and juice bottles, and food jars. Its manufacturing facility at Roodekop in Johannesburg produces glass containers that vary from 200ml to 1.5 litre, and has a total capacity of 285,000 tons.
The buyer is Isanti Glass. The black-owned investment group Kwande owns 60% of the company, while SABSA – the holding company of South African Breweries – holds the rest.
Nampak will use the proceeds from the deal to help settle debt.
In its latest trading update, Nampak reported that the revenue of its glass business for the past 11 months grew by single digits, while volumes remained relatively flat constrained by production output.