Atlas Development & Support Services has signed an agreement to purchase East Africa Packaging, as part of the first project under its newly created industrial division.
The financial details of the transaction have not been disclosed.
Atlas set up its industrial division to focus on consumer-based industrial projects in a bid to widen its business offerings.
Ethiopia-based East Africa Packaging has been established to develop a new glass bottle manufacturing facility, which will be located around 45km north of Addis Ababa.
A bottle facility will be constructed with a $42m investment and the construction and other development costs will be funded on a staged basis. The funds for this project will be drawn from a combination of debt from local development banks, other debt providers, industrial partners and equity.
The facility will be commissioned in 2018 and is expected to start full production in early 2019. Once fully operational, it will be capable of an annual production capacity of around 105 million 330ml bottles.
It will cater to the growing consumer demand for locally produced glass bottles.
East Africa Packaging is currently conducting a full feasibility study of the project, for which around $4m has been allocated.
The last five years has seen Ethiopia attracting investments from international beverage companies, with more than $500m investments being attracted to date.
Atlas Development CEO Carl Esprey said: "The creation of a new industrial division will increase the breadth and sustainability of our business and leverage our current position in Ethiopia to drive additional activity and future earnings.
"The acquisition of East Africa Packaging is contingent on gaining approval to raise the headroom, so we encourage shareholders to support these resolutions so that we can move forwards at pace to implement our vision to develop and broaden our business offering.
"I would, however, like to note that aside from these developments, we continue to hold cash to support the activities of our established support services division."
Image: The manufacturing facility, which will be located around 45km north of Addis Ababa, will be capable of producing close to 105 million 330ml glass bottles annually. Photo: courtesy of Paul / FreeDigitalPhotos.net.