Merchants of paper, packaging, and printing solutions, allied technical equipment and services

South Africa
Business Services; Consumer, Food & Retail
Client Code: BM020132
Turnover (Forecast): R879,971,000
EBITDA (Forecast): R15,784,000

A leading merchant of paper, packaging, equipment and consumables for a wide range of multimedia printing solutions across Southern Africa. The company maintains the long-standing reputation as a trusted supplier with deep-seated expertise and product knowledge of the media and equipment of this progressive industry. Acquirers wishing to strategically secure a greater portion of the paper, printing, packaging, and ancilliary solutions supply chain would do well to invest in this company for their substantial market share from the established and loyal client base. 

Key Aspects
  • A one-stop-shop in supplying an extensive product range of traditional and digital printing papers to the printing industry as well as a commercial office paper offering
  • Niche market green packaging solutions
  • Merchants of well-known international brands
  • Leaders in an industry with significant barriers to entry
  • Substantial market share across sub-Saharan Africa
  • Loyal blue-chip client base
  • Mill tonnage is available of between 30,000 - 60,000 tonnes
  • Supply chain consistency with low risk
  • Optimised stock holding
  • Exceptional technology systems that enable rapid scalability of the company through integration with client systems
  • Product expertise and technical acumen is a significant competitive advantage
  • Innovative product offering securing their sales pipeline
  • Multiple growth opportunities
Opportunities
  • Multiple opportunities exist for growth, and a strategic acquirer can quickly leverage additional revenue streams off the base of the established footprint, a strong reputation, efficient technology, and expert staff.
  • Paper packaging is increasing in popularity compared to plastic options. Eco-friendly paper void-fill packaging offers a significant opportunity, and manufacturing paper packaging in general, and packaging for e-commerce specifically, present growth areas and annuity income stream. 
  • E-commerce and B2B online platform: While only recently implemented and currently offering a small contribution to revenue, greater uptake of these e-commerce sales platforms will contribute towards revenue growth.
  • Government tenders: As a BEE Level 4 supplier, the company can take greater advantage of new business opportunities in government and state-owned entities. 
Headquartered
  • The company is headquartered in Johannesburg, South Africa, with branches across the country supplying into multiple countries in sub-Saharan Africa. 
Current Markets
  • Current customers include printers, suppliers of office consumables, packaging manufacturers, sign and display manufacturers, graphics companies and e-commerce retailers
  • The company also supplies equipment, technical services and maintains the machinery and equipment needed
  • An e-commerce portal for business-to-business sales of the paper, equipment and products augments sales channels 
  • Building up a comparable customer base and market share will prove a significant barrier to entry for newcomers to the market