17 February 2016
Middle East Glass, a Gulf Capital Portfolio Company, acquires 100% of Egyptian Misr Glass Manufacturing as part of a strategy to increase exposure to the fast growing Egyptian food and beverage sector

Abu Dhabi - Gulf Capital, one of the largest and most active alternative investment firms in the Middle East, announced today that one of its portfolio companies, Middle East Glass ("MEG") has acquired 100% of Misr Glass Manufacturing ("MGM"), which is specialised in the manufacturing and marketing of container glass for the food and beverage industry. This acquisition creates the largest glass packaging manufacturer not only in Egypt but also in the MENA region and establishes a solid ground for further growth, including cross-border regional and international expansion. The company 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.

MEG's most recent acquisition of MGM will create the largest glass packaging manufacturers in Egypt. Prior to this deal, MGM was the second largest container glass manufacturer with three furnaces having a total production capacity of 141,000 tonnes per annum, producing glass containers in flint, amber and green colours and catering for both local and export markets. The Group will have six furnaces with a combined total production capacity of 378,000 tonnes per annum serving major local and international food and beverage firms.

Dr. Karim El Solh, Chief Executive Officer of Gulf Capital, said: "MEG is rapidly positioning itself as the largest Arab glass packaging manufacturer, both through organic growth and through acquisitions. This latest acquisition of Misr Glass Manufacturing gives the combined businesses significant scale and allows MEG to increase its share of exports. The investment in MEG and MGM fits with our strategy to partner with exciting local companies and to grow them into regional and global leaders. It also allows us to make indirectly a strategic investment in the fast growing Egyptian consumer market."

The MGM acquisition will create significant operating leverage and production opportunities across the combined platform. The local integration of glass operations will realise operational efficiencies and procurement synergies. With six furnaces, the enlarged platform will effectively manage its production capacity and deliver better flexibility, faster response time and higher service to its customers. The acquisition will provide MEG with significant capacity enabling it to expand its export base into new markets.

Abdul Galil Besher, Chairman of Middle East Glass, said: "With this latest acquisition, Middle East Glass will become the leading glass packaging manufacturer in Egypt with a strong platform to accelerate our export led growth to our traditional regional food and beverage customers and beyond. Misr Glass Manufacturing brings a strong customer base in our target markets, an attractive portfolio of products and flexible production capacity and will add depth to our leadership team. We are very confident that the acquisition will create significant value for all MEG stakeholders."

MEG, a leading diversified packaging group, was established in 1979. It has grown into Egypt's largest glass manufacturer, starting as a 117,000 tonne per annum one-furnace glass manufacturer and, through a strong programme of acquisitions, culminated into a six-furnace operation with a production capacity of 378,000 tonnes per annum. MEG is an approved supplier of multinational companies such as Coca-Cola, Pepsi and Nestle and is positioned to grow its exports in regional and international markets, given its expanded capacity and product range.

Tarek Mounib, Executive Director, Private Equity at Gulf Capital, concluded: "MEG has a significant cost advantage relative to international peers due to its lower cost base and access to local raw materials, translating into a competitive export advantage with rewarding margins. Egypt is therefore a very attractive market from which to export internationally. The MEG platform plans to yield significant human capital efficiencies by focusing on initiatives in training and development of all personnel across the plants."

MEG and Gulf Capital were advised by investment bank HC Securities & Investment and the law firm Maatouk Bassiouny in Egypt.


About Gulf Capital
Gulf Capital is one of the leading alternative asset management firms in the Middle East, investing across several asset classes including Private Equity, Private Debt and Real Estate. The Firm currently manages over AED 12.4 billion (US$4 billion) of assets across 10 funds and investment vehicles. Gulf Capital's mission is to grow capital and build value with world-class expertise and best practices to generate sustainable superior performance for all stakeholders. Gulf Capital, which is celebrating its 10th anniversary this year, invests its own capital alongside its fund investors' capital in all of the funds it launches. Gulf Capital received regional and international recognitions from industry peers and experts. The Firm was awarded the "Best Private Equity Firm in the Middle East" Award by Banker Middle East Magazine in 2011, 2012, 2013, 2014 and 2015 and the "Best Private Equity Firm" in the Middle East and North Africa by Private Equity International, as well as "Best SMEs Credit Fund in the Middle East' in 2015. The Firm is actively involved in real estate development through Gulf Related, its joint venture with the Related Companies, the leading private real estate developer in the United States. Gulf Related is focused on pursuing marquee large-scale mixed-use and residential real estate development opportunities in the UAE and Saudi Arabia. Gulf Capital also launched a Private Debt business, Gulf Credit Partners, which offers credit and mezzanine financing to meet the funding needs of fast-growing companies and to provide acquisition finance across the Middle East, North and Sub-Saharan Africa, as well as Turkey. With its private equity, real estate and private debt initiatives, Gulf Capital is today one of the largest and most diversified alternative asset managers in the Middle East.

For more information about Gulf Capital PJSC, please visit Gulf Capital's website at www.gulfcapital.com
by Borouj Consulting on behalf of Gulf Capital. For more information, please contact: Randa Mazzawi randa@boroujconsulting.com or Mayssa Makhlouf mayssa@boroujconsulting.com at Tel: +9714 3403005, Follow us on Twitter @Borouj.

© Press Release 2016