Thailand-based petrochemicals company Indorama Ventures (IVL) has acquired 74% of the share capital of Egypt-based PET preforms maker Medco Plast for Packing and Packaging Systems.
Medco Plast produces recyclable PET preforms, injection-moulded products, and closures for the soft drink and water manufacturers in Egypt. The company is a subsidiary of Middle East Glass Manufacturing (MEG) and the Samaha family.
It currently operates 11 production lines with an annual production capacity of 70,000 metric tonnes of PET preforms.
The deal expands IVL’s footprint to the East African PET packaging market and complements its existing footprint in West Africa, including Nigeria and Ghana.
Indorama Ventures Group CEO Aloke Lohia said: “The acquisition of Medco aligns with Indorama Ventures’ strategic focus, which includes capitalising on growth opportunities in emerging markets.
“Medco’s strong presence in the domestic market and longstanding customer relationship with all beverage majors operating in Egypt will enable the company to support growing local customers’ demand and provide a platform for further growth in the Middle East and African regions.”
With the completion of the transaction, MEG will now retain a 16% share in Medco Plast, while the Samaha family will own the remaining 10%.
Indorama will enhance Medco Plast’s leadership position, as well as grow its business leveraging its capabilities and supply chain economies.
MEG chairman Abdul Galil Besher said: “We are delighted to announce this transaction with Indorama Ventures, which will add considerable depth to the existing technical strengths and business and management capabilities that Medco needs to enable its transformation to a world-class supplier to the beverage, pharmaceutical and personal care sectors in the region.
“Importantly, this transaction will also allow MEG to deleverage following the aggressive acquisition programme started in 2014 and focus ever more closely on driving the efficiency and performance of our core glass container business.”