SOUTH AFRICA – Nedbank Private Equity (NPE), through its Corporate and Investment Banking division, has partnered with the Mineworkers Investment Company (MIC) to acquire a majority stake in Tropic Plastic and Packaging, a prominent black-owned business.
The transaction, for an undisclosed amount, also allows Tropic’s existing management team to retain a minority interest in the company.
The acquisition marks a significant shift for Tropic, taking it from a family-owned enterprise to one owned by private equity investors.
Founded in 1963, Tropic has grown into one of Africa’s largest privately owned producers of flexible packaging products.
The company’s fully integrated production process makes it a key player in the packaging industry in Southern Africa.
New growth opportunities
Zaheer Abdulla of MIC stated that the acquisition aligns with MIC’s strategy of building a diversified portfolio with strong net asset value growth.
“This acquisition not only enhances our portfolio but also positions us to capitalise on industry trends and drive substantial value for our stakeholders,” Abdulla said.
Nedbank Private Equity is equally optimistic about the potential for growth. “We believe Tropic is well-positioned to benefit from expanding its customer base, new target markets, and product diversification in South Africa and select sub-Saharan African countries,” said Yougan Moodley from NPE.
Tropic’s flexible packaging solutions serve various industries, including the bread, Individual Quick Freezing (IQF), and shrink-wrap markets. Its manufacturing processes include extrusion, printing, bag-making, slitting, and lamination, making it a leader in its field.
Future expansion
Tropic CEO Ismail Simjee views the investment as a turning point for the company.
“This investment marks a significant milestone for Tropic. It can expand our capabilities, product offerings, and footprint. We are excited about leveraging this partnership to take the business to the next level,” Simjee stated.
With its strong market position and expanded resources from this deal, Tropic is set to enter a new growth phase, capitalizing on regional opportunities and industry trends.
Guala Closures buys Astir Vitogiannis
In other investment news, the Competition Commission recently approved Guala Closures’ acquisition of Astir Vitogiannis, positioning the company to strengthen its packaging portfolio further.
Guala Closures specializes in aluminium bottle closures and will now integrate Astir’s crown cork manufacturing capabilities through its local subsidiary, Coleus Packaging.
This acquisition and Tropic’s new ownership structure highlight the growing activity in the African packaging industry.
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