Making its second acquisition of 2017, The Twinsaver Group has agreed to buy Sylko, a supplier of disposable and recyclable household products. The move is the latest in Ethos Private Equity-backed Twinsaver’s strategy to expand its business and position itself as a large-scale FMCG business.
Sylko, which was established 70 years ago, is a well-known brand in South Africa, selling foils and paper products, plastic tableware, baking and gift accessories. It’s expected that the takeover will allow for further capital investment in the company’s technology and product development initiatives, helping to expand its share in South Africa and other African countries. In addition, it’s planned to broaden its focus on household products to include offerings for the commercial sector.
In February this year, Twinsaver acquired Validus Medical, a manufacturer of disposable hygienic products, in an undisclosed deal. According to the company, it has also made investments of R580 million (approximately $43 million) in production equipment recently, a reflection of the opportunity offered by South Africa’s pulp and paper manufacturing sector which the firm sees as topping R28 billion or approximately $2 billion in size.
“We are confident that our investments will help accelerate the substantial growth and diversification journey we are on,” said Garth Towell, Twinsaver’s CEO. “Furthermore, from an economic development perspective, our strategy remains focused on exploring the potential for growth within the pulp and paper manufacturing sector.”
The Twinsaver Group emerged from Ethos’s $144 million deal to acquire a significant portion of Nampak’s South African corrugated paper, sacks and tissue divisions closed in April 2015. The business is part of Ethos’s sixth fund, an $800 million vehicle which closed in early 2013.