The Competition Commission has approved the sale of Sappi Southern Africa’s (Sappi) legacy Lomati Sawmilling business (Lomati) to Normandien Farms.
Sappi said in its announcement of the approval of the transaction on Monday that the deal had been passed without any conditions, allowing the company move ahead with the implementation phase of the sale. The company said it was planning to officially hand over the business on September 1, 2025.
“In terms of the agreement, Sappi will transfer Lomati and its assets as a going concern, ensuring all current Lomati employees benefit from continued employment,” Sappi said.
“Lomati is a legacy business in the Sappi portfolio and this transaction presents an opportunity to transition ownership to an experienced industry player capable of driving future growth and transformation.
“Sappi remains confident that this transaction is in the best interests of all stakeholders. It enables us to focus on developing and growing our core businesses in Mpumalanga,” the company said.
Normandien is a privately owned South African industrial company operating in the sawmilling industry as Tekwani and is also the owner of the fast-growing South African Thirsti bottled water business.
“We are committed to supporting a smooth handover that sustains employment and unlocks new growth potential for the mill, to the benefit of the greater Umjindi community,” Sappi said.
Sappi Southern Africa CEO Graeme Wild said the company was pleased to have concluded the sale of the business to Normandien Farms.
“This transaction is in line with Sappi Southern Africa’s strategy to unlock value and focus on our key product segments of dissolving wood pulp and containerboard. Importantly, it also ensures the continued operation of the mill and the retention of jobs, which will benefit the greater Umjindi community. Our commitment to Mpumalanga remains strong through our forestry operations in the province,” said Wild.
Normandien Farms CEO Sean Hoatson said the Lomati Sawmill fitted perfectly with the company’s strategy to expand its footprint in the local timber industry.
“We look forward to building on the strong foundation established by Sappi and unlocking new opportunities for growth and innovation.”
