Gulf Capital buys into top Egypt glass firm
ABU DHABI, 21 hours, 31 minutes ago
Gulf Capital, a leading alternative investment firm, has completed the acquisition of a strategic minority stake in Middle East Glass Manufacturing (MEG), Egypt’s largest container glass and PET manufacturer.
MEG is a worldwide approved supplier of glass bottles for Coca-Cola, an approved supplier for Pepsi, Nestle and other major beverage producers locally and regionally, a statement said.
Dr Karim El Solh, chief executive officer of Gulf Capital said: “We are thrilled to be partnering with the leading food and beverage packaging company in the largest Arab nation.”
“This investment gives Gulf Capital exposure to the fast growing food and beverage sector and, more importantly, allows us to share in the recovery and growth of the Egyptian market. MEG has distinguished itself with its market leadership and strong management and technical team and has consistently demonstrated its ability to capture growth in one of the most important markets in the Middle East.”
Abdul Galil Besher, chairman of Middle East Glass Manufacturing, said: “We are very pleased to welcome Gulf Capital among our investors, and we think this partnership gives MEG significant impetus going forward to accelerate the growth of our business and strengthen our market position.”
The mid-to-long term view of the Egyptian market remains positive, with Egypt’s consumer expenditure on food and non-alcoholic beverages growing by 7 per cent in 2012, higher than the average growth in the Arab region, as well as in other emerging and developing countries, which grew at 5 per cent.
The sector’s growth internationally lingers at a modest 2 per cent annually on average. In Egypt, the food and beverage sector remains attractive. Between 2009 and 2012, juice, jams and carbonated soft drink volumes registered a compound annual growth rate (CAGR) of 12.4 per cent, 20.2 per cent and 17 per cent respectively.
Richard Dallas, managing director, Private Equity at Gulf Capital, said: “MEG is a high quality glass and PET producer and is a highly competitive producer on a global scale. We believe that our investment in MEG will allow us to capitalise on the fast growing consumer and food and beverage sector in Egypt.”
“Per capita carbonated soft drink consumption in Egypt is 90 unit servings, compared to Saudi Arabia’s whooping 250 unit servings per annum. Similarly, per capita juice consumption is 3kg vs. 13kg in the Arab region.
“The low penetration and strong upside potential clearly present MEG with an opportunity to grow its packaging business within Egypt and beyond,” he added. – TradeArabia News Service
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