RMB Corvest leads buyout of Nampak Liquid Cartons

Nampak Liquid Cartons, known for manufacturing, selling and supplying paper products for beverage packaging, including the widely recognised Pure-Pak and Conipak (conical) cartons, operates primarily in South Africa and Zambia, with a smaller presence in Malawi. These businesses will now fall under the umbrella of the Diversified Liquid Packaging Group (DLP Group), retaining their current operations and staff as they transition into this new structure.

Menzi Khoza, executive at RMB Corvest, highlights the appeal of this investment, noting the strength of the management team led by Derek Perryman as group CEO, alongside Raymond Dube, managing director for South Africa, and Shaun du Plessis, managing director for Zambia and Malawi. Menzi emphasises the importance of the business’s focus on sustainable, environmentally friendly paper packaging.

Derek, now a shareholder and group CEO of DLP Group, expresses optimism about the future, stating: ‘This is an opportunity to drive a well-positioned business with a solid customer base, allowing it to thrive as a standalone, privately owned group.

We are confident in our ability to grow the business and further consolidate our presence outside South Africa.’

With world-class packaging capabilities and long-standing relationships with key customers, the DLP Group is well positioned for future success. Fundiswa Roji-Nodolo, CEO of Dlondlobala Capital, points out that this investment deal unlocks significant value and growth potential, particularly given the company’s current blue-chip customer base.

The DLP Group will offer a fully integrated packaging solution, including filling equipment and technical services to enhance packaging efficiencies for customers. In a challenging economic climate, the company’s ability to deliver cost-effective, environmentally friendly solutions presents numerous opportunities for growth.

Melanie Pillay, executive at RMB Corvest, expresses confidence in the success of the MBO, stating: ‘We have a strong relationship with our management team and the success rate of RMB Corvest-backed management buyouts is very high. We are optimistic about achieving steady growth and good returns with this venture.’

The formation of the DLP Group marks a significant milestone in liquid board packaging, with the company poised to capitalise on its strengths and drive future growth across its core markets.