Abu Dhabi based private equity firm Gulf Capital says one of the companies in its portfolio, Middle East Glass (MEG), has acquired 100 per cent of Misr Glass Manufacturing (MGM), which specialises in the manufacturing and marketing of container glass for the food and beverage industry.

The acquisition of MGM comes amidst the rising economic prospects of a large consumer base in Egypt, bolstering the food and beverage sector and encouraging further multinational investment.

MGM is a worldwide approved supplier of glass bottles for Coca-Cola, Pepsi, and Nestle, amongst others. The deal creates the largest glass packaging manufacturer not only in Egypt but also in the MENA region and establishes a base for further growth and international expansion.

Established in 1979 and since growing to become a leading diversified packaging group, MEG’s 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 a-year (t/y), catering for both local and export markets. The Group will now have six furnaces with a combined total production capacity of 378,000 t/y serving major local and international food and beverage firms.

With six furnaces, the enlarged platform will effectively manage its production capacity and deliver increased flexibility and a more rapid response time to its customers.

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…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.”

Established in 2006 and with around $4bn in assets currently under its management, Gulf Capital primarily focuses on investments across several asset classes including private equity, private debt and real estate.