South African company Penflex has been transformed into a plastics conversion business specialising in the local manufacture of writing
instruments, window blind components and houseware products for the domestic and international market.

This is after Legacy Africa Capital Partners (LACP) took a majority share in Penflex, which had previously focused only on stationery, as well as acquiring the full plastics conversion business of the original parent company, Alplas Plastics.

The transaction was concluded on 30 June 2021 for an undisclosed amount.

LACP executed the acquisition through its Legacy Africa Capital Partners Fund 1 and now owns 60% of the new business, with management holding the remaining 40% of the shares. LACP will have two members on the Penflex board for deep strategic involvement and is looking at an investment horizon of between five to seven years.

The new Penflex product range will include stationery (pens, markers, highlighters, stencils, rulers pencil boxes and lunch boxes), homeware (plastic glassware, plates, bowls, jugs, trays, laundry baskets, cooler boxes and bins), office solutions (storage drawers), as well as window blind components.

Kgosi Monametsi, Managing Director of Legacy Africa Capital Partners, commented: “Penflex is a growing player in the niche plastic conversion market in South Africa. We were attracted to its world-class competency in this space as well as the fact that it has a footprint for export in the northern hemisphere with its window blind components.

When you add an excellent management team that share the values we use to direct our investment decisions, we definitely look forward to a successful partnership for the future.”

“Having started the business from humble beginnings 35 years ago, I am pleased that the company’s future is secured and will continue to employ and support the dedicated staff and their families, many of whom have been with us for in excess of 20 years” said Asher Saban, founder and Managing Director of Alplas Plastics and Penflex .

“Penflex is poised for growth and with the investment from Legacy Africa Capital Partners and their strategic contribution going forward, I believe that we can realise the growth not just for the export market, but also locally by expanding our stationery and houseware product line-up,” added Sean Stuttaford, CEO of Penflex.

Penflex’ plastic conversion production floor houses injection moulding machines, blow-moulding machines and small plastic tube extrusion machines in support of the writing instrument and blind component assembly lines. A special focus is placed on utilising recycled materials in order to support the recycling industry.

LACP firmly believes South Africa has the manufacturing competence and capability to produce high-quality products that can stimulate the local economy, reduce the reliance on imports from specifically the Far East, and provide access to export markets that will elevate job creation.

“Our objective, now more than ever in the current economic climate, is to support South African manufacturing businesses that support growth and create jobs,” says Monametsi.

Stuttaford concludes: “The management of Penflex shares this vision with our investment partner. Penflex is proudly South African, with passionate employees and benchmark expertise, allowing us to manufacture products that can compete on any world stage.”

About Penflex

Penflex is a South African based plastic conversion and manufacturing company of stationery, houseware and blind components. The range of products are manufactured in the company’s manufacturing facilities in Cape Town, South Africa. The factories boast world-class production capabilities, able to meet the stringent quality requirements demanded by its local and international customers.

About Legacy Africa Capital Partners

Legacy Africa Capital Partners (LACP) was founded in September 2018 and is a private equity fund management business. LACP is the manager of Legacy Africa Capital Partners Fund I and is part of Legacy Africa Fund Managers. LACP is a 100% black-owned and managed company comprising a team of deal principals with a long history of private equity investing. The firm seeks to provide capital to entrepreneurial, unlisted companies seeking expansion or buy-out capital to introduce black shareholding to drive growth.

Press Release: Legacy Africa Capital Partners concludes deal with Penflex and its parent company. 2021. [O]. Available: https://savca.co.za/press-release-legacy-africa-capital-partners-concludes-deal-with-penflex-and-its-parent-company/press-release/