KAP spends R4.1bn in deal

Industrial company KAP is buying Safripol, which makes certain plastics, for R4.1 billion through a subsidiary.

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Johannesburg - Industrial company KAP is buying Safripol, which makes certain plastics, for R4.1 billion through a subsidiary.

In a statement issued on Wednesday, the company says it is buying Safripol, established in 1972,Rockwood Fund I GP, Thebe Safripol Investments and certain members of the Safripol management team.

It explains Safripol manufactures Polypropylene (PP) and High-Density Polyethylene (HDPE), which are used to manufacture an extensive range of industrial and consumer products.

The company explains that it is invested in a number of industrial businesses managed within two segments: Diversified Logistics and Diversified Industrial. The Diversified Industrial segment includes chemical operations comprised of its Hosaf and Woodchem businesses.

It is one of KAP’s strategic objectives to grow its business by investing in industrial assets that are complementary to its existing operations. The Safripol business operates in the chemical sector and produces complementary products to those of Hosaf, with a similar business model.

As a result, it says, it is an ideal fit for its chemical segment.

KAP will pay cash and says the deal, which is subject to the customary clearances, should be effective next January.

IOL