SAB is redefining the black industrialist landscape one glass bottle at a time
In its drive to contribute to the development of a transformed and inclusive economy SAB, in partnership with Kwande Capital, has agreed to buy Nampak’s glass division for an estimated R1.5bn.
Kwande Capital is a 100% BlackOwned and 50% Black Women-Owned investment holding company. SAB’s holding company SABSA has formed a new company, aptly named Isanti Glass.
Isanti is the isiXhosa word for sand, the key component of glass. Kwande Capital has a 60% shareholding in the new company and SABSA owns the balance. If approved, the transaction will create the first majority Black-Owned glass manufacturer in SA, in line with the department of trade and industry’s Black Industrialist policy.
This transaction will also deliver on SAB’s commitment to the SA government to convert existing industrialised suppliers to black ownership. Isanti Glass will be one of two primary glass container makers in SA servicing beverage and food manufacturers.
The business will have an estimated market share of 25%.
The cash sale of the Nampak business consists of R992m for the property, plant and equipment, plus the value attributable to agreed levels of networking capital of the business as at the closing date.
The transaction is subject to the fulfilment of various suspensive conditions, including approval from the competition authorities.
The Nampak glass division currently makes beer, spirits and wine bottles, water and juice bottles, and food jars. It operates three furnaces in Roodekop, Johannesburg, which has a capacity of 285,000 tonnes.
SAB is part of the global AB InBev family, which is one of the largest glass manufacturers in the world, with glass plants in Brazil, Mexico, Paraguay and the US. Isanti Glass will get technical support and training from the global AB InBev vertical operations team.
“Our collaboration with Kwande Capital is directly aligned to our desire to contribute to the development of a transformed, sustainable and vibrant economy,” said Richard Rivett-Carnac, SAB’s director of mergers & acquisitions.
“There is a strong drive towards BlackOwned entities owning tangible assets rather than owning minority shares in companies, a gap we realised was critical for us to close.”
“SAB is a proudly South African company committed to creating hope for the future and accelerating inclusive growth across our value chain,” said Kyle Day, SAB’s director of mergers & acquisitions – vertical transformation.
“Our goal, through various initiatives (such as Isanti Glass), is to redefine the empowerment landscape in SA.”
The spirit of entrepreneurship has been at the heart of SAB for over 124 years, says the company.
Its commitment to transforming its supply chain has led to it employing 20 business coaches and engineers to support its entrepreneurship initiatives.
SAB has several well established entrepreneurship programmes, including SAB KickStart and SAB Foundation, all aimed at ensuring the growth of successful entrepreneurs, and prioritising women and youth.
The programmes provide business coaching, financial support and market access to the businesses to drive economic growth and create jobs.