Transaction Summary
Nedbank Private Equity (NPE) and MineWorkers Investment Company (MIC) have formed a consortium to acquire an 85% equity stake in Tropic Plastic and Packaging, a Durban-based flexible packaging manufacturer. Founded in 1963 by the Bhaba family, Tropic specializes in manufacturing polyethylene films and their derivatives for extrusion, printing, bag-making, and lamination, primarily supplying the fast-moving consumer goods (FMCG) sector. The company serves multiple blue-chip clients, including Exxon Mobil and major South African packaged food corporations.
Terms
- Fund Managers: Nedbank Private Equity (NPE) and MineWorkers Investment Company (MIC)
- Equity Stake: 85%
- Fund: Nedbank Private Equity Fund (NPE 2)
- Transaction Type: Majority Buyout
- Target Company: Tropic Plastic and Packaging Industry
Transaction Rationale
The plastic industry is a complex, global operation involving several stages: extraction of raw materials from fossil fuels, conversion into pellets, manufacturing into final products, and distribution to markets. The industry is undergoing significant shifts towards sustainability and a circular economy model that
