Private equity firm Gulf Capital has acquired a strategic minority stake in Egypt-based Middle East Glass Manufacturing (MEG) for an undisclosed amount.
Gulf Capital CEO Karim El Solh said: "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."
MEG is a container glass manufacturer and also produces PET pre-forms for the carbonated soft drink (CSD) segment. It is a worldwide approved supplier of glass bottles for Coca-Cola and an approved supplier for Pepsi, Nestle and other major beverage producers.
Through this deal, MEG also hopes to bolster its market position and accelerate business growth.
Gulf Capital said that the per capita consumption of CSD is 90 unit servings in Egypt, compared with Saudi Arabia’s 250 unit servings annually, while per capita juice consumption is 3kg, compared with 13kg in the Arab region.
Image: A finished PET drink bottle compared with the preform from which it is made. Photo: courtesy of Nicole Gordine.