Tropic specialises in the manufacture of packaging for bread, Individual Quick Freezing (IQF), and shrink wrap through extrusion, printing, bag making, slitting and lamination processes. Picture: Supplied
Nedbank Private Equity (NPE), through the Nedbank Corporate and Investment Banking division, and Mineworkers Investment Company (MIC) have partnered to acquire a majority stake in black-owned Tropic Plastic and Packaging Industry (Tropic).
The transaction for an undisclosed sum will see the existing management team of Tropic also acquire a minority interest in the business. The deal not only secures a substantial realisation of investment of a pioneering black-owned business, but also charts Tropic into a new phase of growth from a family-owned business into a private-equity owned business, a statement said yesterday.
Tropic was founded in 1963 and has grown from a family-founded and run business into one of the largest privately owned, fully integrated producers of flexible packaging products in Africa.
“This acquisition not only enhances our portfolio but also positions us to capitalise on industry trends and drive substantial value for our stakeholders,” said Zaheer Abdulla from MIC, in a statement.
The deal is aligned with MIC’s investment strategy of achieving a diversified portfolio, underpinned by strong net asset value growth.
“We are excited to partner with Nedbank Private Equity and Tropic’s dynamic management team in this significant investment,” he said.
Tropic’s clients across Southern Africa underpin its market position as a premium and market leading supplier of flexible packaging solutions in Southern Africa.
“We believe Tropic is well positioned to benefit from growth of its customer base, new target customers and product adjacencies in South Africa and select sub-Saharan Africa countries,” said Yougan Moodley, from NPE.
Tropic specialises in the manufacture of packaging for bread, Individual Quick Freezing (IQF), and shrink wrap through extrusion, printing, bag making, slitting and lamination processes.
Tropic CEO Ismail Simjee said: “This investment marks a significant milestone for Tropic, and it holds the potential for us to expand our capabilities, product offering and footprint. We look forward to leveraging our partnership and take the business to the next level,” he said.
BUSINESS REPORT