One of Gulf Capital’s portfolio companies, Middle East Glass, has acquired ownership of Misr Glass Manufacturing, an Egyptian company that specializes in the manufacture of container glass for the food and beverage industry. Terms of the deal were not disclosed, but the transaction creates the MENA region’s largest glass packaging concern, with a client list that includes a number of the world’s largest brands including Coca-Cola, Nestlé and Pepsi as well as other major domestic and regional beverage producers.
The acquisition will expand Middle East Glass’s production capacity and help its drive into new export markets. The deal creates the newly combined entities with significant operating leverage and production opportunities, and it is hoped, help them realize operational and procurement efficiencies.
Commenting on the deal, Tarek Mounib, Executive Director, Private Equity at Gulf Capital, said “MEG has a significant cost advantage relative to international peers due to its lower cost base and access to local raw materials, translating into a competitive export advantage with rewarding margins. Egypt is therefore a very attractive market from which to export internationally. The MEG platform plans to yield significant human capital efficiencies by focusing on initiatives in training and development of all personnel across the plants.”
HC Securities Investment and Maatouk Bassiouny provided Middle East Glass and Gulf Capital with advisory services on the deal.