Egypt: Gulf Capital exits glass manufacturer
Egypt: Gulf Capital exits glass manufacturer
Gulf Capital has sold its stake in Egypt-listed Middle East Glass.
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Private equity firm Gulf Capital has sold its stake in Egypt-listed Middle East Glass (MEG) to the majority shareholder of the business, MENA Glass Holdings.
Gulf Capital’s growth investment enabled MEG to become the largest glass packaging manufacturer in the Middle East and the second largest in Africa. MEG serves several industries, including food, beverage, and pharmaceuticals and is currently one of the top five exporters in Egypt.
Today, MEG operates three facilities with 17 production lines, and six furnaces, with an operating capacity of over 385,000 tonnes per annum, from 197,000 tonnes per annum at entry.
Dr. Karim El Solh, co-founder and chief executive officer of Gulf Capital said: “MEG is a true example of our ambitious ‘buy-and-build’ strategy and our deep focus on operational improvements. MEG’s transformational journey of value creation was possible through a true partnership for growth with MEG’s management team and the majority shareholder. We worked together with the team to implement a clear operational improvements strategy that saw the company grow its business not only through several mergers and acquisitions, but also organically by expanding into new geographies and sectors. In the last fiscal year, MEG achieved all-time high revenues and profitability. As a thematic investor, Gulf Capital’s investment in MEG was underpinned by sustainability trends and by the rise in recycling awareness in the region. We are thrilled to have been part of MEG’s journey along with its distinguished leadership and strong management team, and we wish them all the best as the company embarks on its next phase of growth.”
With funding provided by Gulf Capital, MEG led the consolidation of the industry and completed two strategic acquisitions of Wadi Glass and Misr Glass Manufacturing. The company also secured a $100 million debt financing from the International Finance Corporation (IFC) to help fund an ambitious capital expenditure programme to optimise its processes using the latest manufacturing and waste reduction technologies.
Gulf Capital was advised on financials by Arqaam Capital and on legal by White & Case. MENA Glass Holdings Limited was advised on legal by both MENA Associates in association with AMERELLER and Bahaa-Eldin Law Office in cooperation with BonelliErede.
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