An opportunity to acquire a fully operational plastic-packaging manufacturing business located in an established Cape Town industrial area.
The business specialises in the manufacture of HDPE and PET plastic packaging and produces a diverse range of containers, bottles, polycans, preforms, caps and closures. Its products serve recurring packaging requirements across the household, industrial, automotive, chemical, cleaning, lubricant and personal-care sectors.
The operation is fully equipped, has an established product range and currently employs 14 staff members.
BUSINESS BACKGROUND
The current owner originally acquired the business to manufacture plastic bottles and packaging for his own associated operation. This provided the manufacturing business with a practical underlying demand for its products while establishing the necessary production capability, staff complement, equipment and industry experience.
The owner is now moving towards retirement and wishes to place the manufacturing business in the hands of a motivated purchaser who can focus on developing its full commercial potential.
Importantly, the seller intends to remain a client of the business following the sale, providing the purchaser with an element of customer continuity. The terms of any ongoing supply arrangement will be negotiated and documented as part of the transaction.
FINANCIAL PERFORMANCE
For the six-month period from March to August 2026, the business recorded:
- Turnover of approximately R4.21 million;
- Average monthly sales of approximately R701,000;
- Gross profit of approximately R1.88 million; and
- An overall gross profit margin of approximately 44.8%.
Detailed financial information will be provided to qualified prospective purchasers following completion of the required confidentiality and financial qualification process.
FULLY OPERATIONAL MANUFACTURING BUSINESS
The business is sold as a fully operational manufacturing concern with:
- A current complement of 14 staff members;
- Multiple production lines;
- HDPE and PET manufacturing capabilities;
- Specialised blow-moulding equipment;
- Cap-moulding capability;
- An extensive range of moulds, inserts and tooling;
- Custom container manufacturing capability;
- Screen-printing and finishing equipment;
- Supporting production and recycling equipment; and
- The ancillary infrastructure required for continued production.
A comprehensive fixed-asset register will be made available to qualified purchasers. Individual machine descriptions, model numbers and technical specifications are not disclosed in the public advertisement.
PRODUCT AND MARKET DIVERSIFICATION
The business manufactures packaging suited to several industries and applications, including:
- Household and industrial chemicals;
- Detergents and fabric-care products;
- Automotive chemicals and engine cleaners;
- Lubricants and oils;
- Water and beverage applications;
- Personal-care products; and
- General commercial packaging requirements.
In addition to its standard product range, the business can offer customer-specific moulding and direct printing solutions. This enables customers to develop packaging suited to their individual product, application and branding requirements.
SIGNIFICANT GROWTH POTENTIAL
The business is operational and generating revenue, but its next phase requires a more hands-on owner who can actively develop the external market.
The operation was initially acquired primarily to produce packaging for the owner’s associated business. It has therefore not yet been developed to its full potential as an independent manufacturing and sales operation.
Growth opportunities include:
- Appointing dedicated sales personnel;
- Actively marketing the existing product range;
- Securing additional recurring supply contracts;
- Expanding the customer base beyond the current relationships;
- Increasing the utilisation of existing production capacity;
- Growing contract-manufacturing services;
- Developing private-label packaging solutions;
- Introducing further custom-designed containers;
- Expanding branded printing services;
- Entering additional geographic markets; and
- Building relationships with chemical, detergent, automotive, lubricant and personal-care manufacturers.
A commercially driven purchaser could build on the existing infrastructure, products and skills base without having to establish a new manufacturing operation from the ground up.
PROPERTY AND LEASE ARRANGEMENT
The business operates from suitable industrial premises in Cape Town.
The immovable property is owned by the current business owner but is expressly excluded from the sale. The asking price does not include the land or buildings.
A separate lease agreement for the purchaser’s continued occupation of the premises will be concluded with the property owner. The rental, lease period, escalation and related commercial terms will form part of the transaction negotiations.
SUITABLE PURCHASER
This opportunity may be particularly attractive to:
- A hands-on entrepreneur with manufacturing, engineering or sales experience;
- An established packaging manufacturer seeking additional capacity;
- A chemical, detergent or lubricant manufacturer wishing to internalise packaging production;
- A strategic purchaser seeking an operational Western Cape manufacturing platform;
- A sales-driven purchaser able to secure further supply contracts; or
- An investment group seeking an operational industrial business supported by tangible production assets.
SALE INFORMATION
Asking price: R6,150,000 excluding VAT
Staff: 14 employees
Property: Not included in the sale
Premises: A separate lease will be concluded with the property owner
Location: Cape Town, Western Cape
Seller’s reason for sale: Retirement
Seller’s future involvement: The seller intends to remain a customer of the business, subject to an agreed supply arrangement
CONFIDENTIALITY
The identity of the business, detailed financial information, customer information, supplier arrangements, production data and comprehensive fixed-asset register are strictly confidential.
Further information will only be released following:
1. Completion and acceptance of the required confidentiality agreement;
2. Confirmation of the prospective purchaser’s identity;
3. Confirmation of the purchaser’s financial capacity; and
4. Approval to proceed to the next stage of the assessment process.
All meetings and factory viewings are strictly by appointment. Prospective purchasers may not approach the business, its employees, customers, suppliers or property owner directly.
Contact Udalali Business & Commercial for further information.
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