Ethos Private Equity says it has entered into an agreement to acquire Nampak's tissue, corrugated and sacks divisions for a total purchase price of $143 million. This agreement excludes Nampak's 50% shareholding in Sancella Proprietary Limited.

For some time, Nampak has had a stated strategy of focusing on core product segments in South Africa and the rest of Africa, and these three divisions do not form part of this focus.

The transaction is subject to a number of conditions precedent, including various demerger and supply arrangements with Nampak and approval by the Competition authorities.

The effective date of the transaction is expected to be in the second quarter of 2015. On conclusion of the transaction, it is envisaged that the re-branded businesses will continue to be managed autonomously.