RMB Corvest and partners facilitate an MBO of Nampak Liquid Cartons

RMB Corvest, in partnership with Dlondlobala Capital, concluded a successful management buyout of Nampak Liquid Cartons (a division of Nampak Products Ltd (Nampak Products)), Nampak Zambia and Nampak Malawi.

Nampak Liquid Cartons (a separate business division under Nampak Products) manufactures, sells and supplies paper products to package beverages, including Pure-Pak and Conipak (conical) cartons in South Africa. The core operations of the Group are in South Africa and Zambia, with Malawi considered a smaller business. The businesses will has been acquired by and will become part of the newly formed Diversified Liquid Packaging Group (Pty) Ltd (DLP Group) and will retain its current operations and staff.

“What makes this investment attractive is the backing of a strong management team, with Derek Perryman as Group CEO, Raymond Dube (South Africa MD) and Shaun du Plessis (MD for Zambia and Malawi). We are also excited that the business is predominantly a paper packaging manufacturer that offers more sustainable, environmentally friendly packaging,” says Menzi Khoza, Executive: RMB Corvest.

“This as an opportunity to drive a well-positioned business with a good client base, that can thrive as a smaller standalone privately owned group. We believe we can continue to grow the business and further consolidate our position outside South Africa,” says Perryman, shareholder and Group CEO of the DLP Group.

The business has world-class packaging capabilities producing a range of customised products and enjoys long-standing relationships with key clients. “This investment deal unlocks notable value and growth potential – especially considering the current blue chip customer base,” says Fundiswa Roji-Nodolo CEO: Dlondlobala Capital.

The DLP Group offers a fully integrated packaging solution to customers, including filling equipment and technical services to maintain the equipment and improve packaging efficiencies for clients. In the current economic climate, the business is able to provide cost-effective, environmentally friendly solutions, which will provide opportunities for growth.

“We enjoy strong relationships with our management team. The success rate of RMB Corvest’s backed management buy-outs is very high,” notes Melanie Pillay, Executive: RMB Corvest. “We are confident of achieving steady growth with good returns.”