August 2009 saw Afripack announcing that it had concluded the purchase of Astrapak’s flexible packaging division. The R184-million deal, which has effectively doubled Afripack’s turnover, means that there is a serious new contender in the country’s R11-billion per annum flexible packaging industry.
Encompassing Astraflex, Cape Wrappers, DLC Pack, Tamperpak, Astra Repro and Standard Labels in Mauritius, the new company will forthwith be known as Afripack Consumer Flexibles or ACF. Another significant move is the restructuring of the new business unit into two primary clusters – Flexibles (which includes the former Cape Wrappers and Astraflex); and Labels (which includes the former DLC Pack, Tamperpak and Standard Labels). Both clusters will be complemented by ACF Repro (previously known as Astra Repro).
The restructuring efficiently combines the four loosely linked entities, into one solid company with a single vision - in line with the Afripack motto “SISONKE” or “we are together”. It is Afripack’s belief that it is the combination into a single entity that will bring about a turnaround in the flagging results shown by their new acquisition during the past few years. According to CEO Arnold Vermaak Afripack has purchased the best in people and technology with an excellent combined customer base and strong supplier commitment, the perfect platform from which to grow a highly successful consumer flexibles business.
Afripack was originally 100% owned by Pretoria Portland Cement (PPC). In 2004, PPC concluded a BEE transaction, selling 50% of its shareholding in Afripack to Nozala (a broad based female group) and 25% to a Management Consortium. An acquisition of the scale of Astrapak flexibles could not have happened without the unqualified support of Afripack’s shareholders. A large portion of the purchase price was funded by shareholder funds (Nozala Investments, PPC and Afripack’s management), and the new business is in the happy position of having funding capacity for further growth opportunities.
From a leadership perspective, ACF’s board of directors includes executives from Nozala Investments, PPC and Afripack. The Overall responsibility for Afripack still rests with CEO, Arnold Vermaak but accountability for the new company falls to James Hynd, who has been appointed ACF’s CEO. He will be aided by a strong executive team that includes the general managers of each business unit (BU), as well as ACF’s sales & marketing executive.
The members of the executive team have recently been confirmed. They are Gary Seale - GM of ACF Flexibles - KZN, Chris McLaughlin - GM of ACF Flexibles - Cape, Greg Petzer - GM of ACF Labels; Craig Oliver - GM of ACF Repro; and Derek Huntley - sales & marketing executive. Hubert Hurel - MD of Standard Labels in Mauritius and the operations management team at Tamperpak will report in to Greg Petzer under ACF labels.
- Press Release ends-
Issued by Tonic Creative-Communications
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