Gulf Capital has divested its strategic stake in Middle East Glass S.A.E. (MEG) to MENA Glass Holdings Limited. This move comes following a notable expansion in MEG’s operations and financial performance during Gulf Capital’s holding period.
MEG, now the largest glass packaging manufacturer in the Middle East and the second largest in Africa, experienced significant growth under Gulf Capital’s investment. The company increased its production capacity from 197,000 to over 385,000 metric tons per annum, expanded its export markets to over 25 countries, and enhanced its client base substantially. During this time, MEG’s revenue and profitability grew more than threefold, and profit margins increased by 50%.
Dr. Karim El Solh, Co-Founder and CEO of Gulf Capital, highlighted the investment’s success, stating, “MEG’s transformational journey of value creation was possible through a true partnership for growth with MEG’s management team and the majority shareholder.”
Under Gulf Capital’s guidance, MEG also completed two strategic acquisitions, Wadi Glass and Misr Glass Manufacturing (MGM), and secured $100 million in debt financing from the International Finance Corporation (IFC) to support an extensive capital expenditure program.
Abdul Galil Besher, Chairman of Middle East Glass, noted, “Our partnership with Gulf Capital has enabled the company to accelerate growth and strengthen our market position regionally.”
Asaad Salhab, Senior Operating Partner at Gulf Capital, praised the disciplined execution of the value creation plan, which led to record-high operating metrics and overall profitability. He added, “The investment in MEG is a great example of Gulf Capital’s focus on operational improvements and growth.”
The sale was advised on financials by Arqaam Capital and on legal matters by White & Case. MENA Glass Holdings Limited was advised on legal issues by MENA Associates, in association with AMERELLER, and Bahaa-Eldin Law Office, in cooperation with BonelliErede.