Astrapak Limited has entered into an agreement to dispose of East Rand Plastics (a division of Astrapak Manufacturing Proprietary Limited) to Transpaco Limited; a decision in line with Astrapak’s strategic objective to focus on operations of scale within the food, beverage, personal care, pharmaceutical and petrochemical markets.
East Rand Plastics operates as a manufacturer of polyethylene flexible packaging materials predominantly active in the production of refuse bags. The business also has the ability to produce multi-layered industrial film and tubing. The majority of its products are marketed through all major national retail stores in South Africa under its own brand Garbie and individual retailer house brands.
In January 2013, East Rand Plastics was devastated by a fire and the business was also downsized significantly post the overall rationalisation of Astrapak’s Flexible Division in 2014.
The transaction, which is still subject to various conditions including approval from Competition Commission Authority will take effect the month following the fulfilment of all the required conditions, which is expected to be on or about 30 June 2015.
Funds from the sale of the business will be used to further reduce Astrapak Limited’s current level of gearing.