South African printing and publishing company Caxton and CTP Publishers and Printers has received green signal from the Competition Tribunal to acquire the Nampak Cartons and Labels division in South Africa.
The acquisition will allow Caxton to enhance its packaging business, which has grown from ZAR677m ($63.11m) in 2012 to ZAR764m ($71.22m) in 2013 and ZAR927m ($86.4m) in 2014.
Caxton executive director Tim Holden was quoted by Moneyweb as saying: "We've been in packaging for a while and when this opportunity came around we saw it as a chance to add more bulk overall to the group, but also in a market that can add significant value going forward.
"It is also an opportunity to diversify the group further, with our packaging divisions becoming around 30% of turnover."
Caxton manufactures cigarette cartons and folding cartons for industries including, food, beverage and confectionery, and wet glued adhesive labels that are paper-based for beer bottles and flexible labeling.
Caxton, which believes that the acquisition can contribute to the group considerably, hopes it will also align properly with its current businesses.
Nampak has announced the signing of an agreement in the year 2013 to sell its Nampak Cartons and Labels division to a subsidiary of Caxton.
As a result of acquisition, packaging turnover in the coming year is expected to be more than ZAR2bn.
The Competition Tribunal is South Africa's competition adjudicator.
Publisher and printer of books, magazines, newspapers and commercial print in South Africa, Caxton is involved in various fields of publishing and printing such as newspapers, magazines, commercial print, book printing, stationery, packaging and labels.
