Diversified international packaging group Nampak (Sandton / Republic of South Africa; www.nampak.co.za) is selling its European cartons and healthcare business to private equity firm Maximus Holdings II (Luxembourg) for a cash sum of GBP 65m (EUR 77m). The business being sold, Nampak Paper Holdings, is valued at GBP 80m (EUR 95m), but after pension fund liabilities and other debt items the net proceeds to Nampak will come to GBP 65m. Nampak had previously indicated it was in discussions over a possible sale of the business, but had no plans to shut any of its facilities – see Plasteurope.com of 13.12.2010.

Nampak had acquired the cartons and pharmaceutical packaging business in 2002 when it bought Malbak (see Plasteurope.com of 25.07.2002), but said the operations have delivered poor results ever since, with returns averaging 5.9% on net assets. The business comprises Nampak Cartons, which produces cartons for the food and beverage sectors from three sites – two in the UK and one in the Netherlands – and Nampak Healthcare, which produces cartons, leaflets, labels and blister pack foils for the pharmaceutical industry from 11 sites across Europe.

The deal requires approval from the European competition authorities and is not expected to be completed until the end of March 2011. Nampak says it will then use the funds to pay down debt and invest in other operations. Unlisted Maximus Holdings II is an affiliate of Platinum Equity (Los Angeles / USA; www.platinumequity.com), which specialises in mergers and acquisitions.