Transpaco to buy FPM’s packaging business
By Nick Hedley - Dec 19th 2017, 13:36
Paper and plastic packaging group Transpaco says it will buy Future Packaging and Machinery (FPM) for up to R105m.
"FPM is an attractive target business prospect for Transpaco to expand its business," Transpaco announced on Monday.
Its share price rose 1% to R22 in light trade on Monday.
FPM supplies industrial and general packaging products and sells them through three major distribution centres, in Johannesburg, Cape Town and Durban, and two smaller depots in Bloemfontein and Nelspruit.
"FPM has achieved consistent growth in sales and profitability since inception."
"Transpaco seeks access to the large customer base that FPM currently services and its extensive product range to add to Transpaco’s existing offering," the group said.
The maximum estimated purchase price would be R105m, depending on the target company’s audited financial statements for the year to end-February 2018, Transpaco said.
It would pay a premium of R37.2m to the book value of the net assets being acquired and would fund the deal with existing facilities and cash resources, it said.
FPM expects to generate turnover of R461m and net profit after tax of R20m in its financial year ending February 2018.
Transpaco said FPM was "highly profitable and cash generative", while it had well-known products and services and an "experienced and self-sufficient management team".
It also had "strong growth prospects, arising from its established position in SA and opportunities to further expand municipal, industrial, wholesale, retail, agricultural and export markets".
Transpaco could extend FPM’s product offering to its own customers. The deal was expected to enhance Transpaco’s earnings.© BusinessLIVE MMXVII
UK’s Debenhams falls into administration
09/04/2019 - 14:47
Debenhams’ lenders took control of the ailing British retailer after it went into administration, wiping out shareholders including billionaire Mike Ashley in the latest corporate failure on the high street.
Dove partners with Getty Images and Girlgaze to launch Project #ShowUs
29/03/2019 - 09:47
Dove has taken action with Getty Images, Girlgaze and women around the world to create Project #ShowUs – the world’s largest stock photo library created by women and non-binary individuals to shatter beauty stereotypes by showing women as they are, not as others believe they should be.
Digital communication is key to good customer experience, here’s how to get it right
19/02/2019 - 08:19
Over the past few years, companies have started paying increasing amounts of attention to customer experience (CX). While the idea behind it (customers will keep coming back to a business if they have a good experience), is hardly new, it’s become more and more of a science.
Diageo introduces eight Game of Thrones-themed Scotch whiskies
28/01/2019 - 09:15
Diageo has teamed up with television network HBO to launch a limited-edition range of Game of Thrones-themed Scotch whiskies.
Superbalist.com launches its Click and Collect service in time for peak season shopping
14/11/2018 - 16:09
Customers use the service by choosing “Collection” when they check out on the Superbalist website or app. They are provided a pin code via email and sms and take that to their chosen Takealot Pickup Point within 7 days of delivery - orders arrive within 2-4 days of purchase.