Summary

A rare acquisition opportunity exists to acquire a well-established and highly reputable plastic packaging manufacturing company, strategically located in a prime business park in Gauteng, South Africa.

Established since 2003, this profitable enterprise has cultivated over two decades of extensive industry experience and a strong market reputation. It stands as a comprehensive service provider, offering a diverse range of high-quality plastic packaging solutions, including squeezable plastic tubes, jars, bottles, and caps, all tailored to meet specific client requirements.

Key Business Highlights:

Advanced In-House Manufacturing: Features a complete, in-house squeezable PE tube plant, providing a significant competitive advantage with end-to-end extrusion for seamless, high-quality tubes.

Comprehensive Service Offering: All tube printing is performed in-house, ensuring precise quality control, and the business also offers artwork design assistance to clients.

Quality Assurance: A dedicated Quality Control (QC) room is integral to operations, ensuring rigorous inspection and adherence to the highest quality standards.

Diversified Client Base: Serves a broad portfolio of prominent clients across the cosmetic, pharmaceutical, and industrial sectors.

Limited Competition: Operates within a relatively uncongested market, with only approximately four similar companies in South Africa, underscoring a strong market position.

Strong Financial Performance: Demonstrates consistent revenue growth (7.6% CAGR), significant profitability improvements (85% increase in Net Profit Before Tax in the last year), robust liquidity, and an extremely low likelihood of bankruptcy. The business exhibits efficient operations and moderate growth prospects.

Growth Potential: Opportunities for further expansion across Africa and the potential to develop a new division for specialized transfer foil and digital printing directly onto manufactured items.

Well-Maintained Facilities:

Offices: Feature five spacious offices suitable for directors/managers, a welcoming reception, a dedicated boardroom, and a sophisticated client lounge with a bar for entertaining.

Factory: Includes a spacious, health & safety compliant factory area, multiple secure storage rooms, two loading bays, a designated dispatch area, dedicated staff changing rooms and a canteen, and a dedicated toolroom for repairs, ensuring efficient maintenance and minimal downtime.

Strategic Location: Situated in a prime business park offering excellent highway access, high visibility, well-developed infrastructure, and proximity to a readily available labor pool.

Reason for Sale: The sale is driven by the owners' strategic decision for retirement and to pursue new ventures.

This acquisition represents a compelling opportunity to enter or expand within a specialized and stable market segment with a well-regarded company possessing strong manufacturing capabilities, comprehensive in-house services, and a loyal client base in a market with limited direct competition.

Serious inquiries only. All information subject to signing a Non-Disclosure Agreement (NDA).

Estimated Business Enterprise Value: R62 Million Rands.

Contact Divine Business Brokers for further details.