Gulf Capital acquires stake in Egyptian glass, PET company

Gulf Capital, one of the leading and most active alternative investment firms in the Middle East, has acquired a minority stake in Egypt’s largest container glass manufacturer and producer of PET pre-forms for carbonated drinks, Middle East Glass Manufacturing (MEG).

MEG is listed on the Egyptian Exchange. It counts Coca-Cola, Pepsi, and Nestle as amongst its customers locally and regionally.

“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,” said Dr Karim El Solh, Chief Executive Officer of Gulf Capital. “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.”

According to Gulf Capital, Egypt’s consumer expenditure on food and non-alcoholic beverages grew by 7% in 2012. This is higher than the average growth in the Arab region, as well as in other emerging and developing countries. The sector’s growth internationally lingers at 2% annually on average. Between 2009 and 2012, juice, jams and carbonated soft drink volumes registered a compound annual growth rate (CAGR) of 12.4%, 20.2% and 17% respectively.