Nampak will sell its paper business to Ethos Private Equity on behalf of the Ethos Fund IV for around $14m (R1.575bn).
The sale will include Nampak's corrugated, sacks and tissue divisions, but will exclude its shareholding in Sancella and its recycling business.
Ethos said that the transaction was subject to a number of conditions precedent, including various de-merger and supply arrangements with Nampak and approval by the Competition authorities.
The transaction is expected to be completed in the second quarter of 2015. Post completion, it is being said that the re-branded businesses will continue to be managed autonomously.
According to a statement from Nampak, the proceeds from the transaction would be used for its expansion plans in the rest of Africa.
The company also recorded a strong year as revenues for 2014 had increased by 10% to $1.82bn (R20bn).
Nampak CEO Andre de Ruyter said: "With the outlook for South African economic growth modest at best, Nampak is putting a strong emphasis on rigorous management of factors under its control.
"Already established as the packaging leader in Africa, with operations in 11 African countries beyond South Africa's borderscontributing more than a quarter of trading profit, we continue to focus on taking advantage of Africa's upward growth trajectory."
The company also stated that the total capital expenditure for the year increase to $24m (R2.6bn) from $13m (R1.4bn) in 2013.
"We spent R1.9 billion in South Africa and R702 million in the rest of Africa. In South Africa, our investments benefited from the government's Section 12I Tax Allowance Incentive for a brownfields investment," said the company in a statement.
