HC Acted as the Exclusive Financial Advisor to MEG Misr for Glass on its acquisition of 100% of the share capital of Misr Glass Manufacturing Company.
January 19th, 2016 – HC Securities & Investment (www.hc-si.com) is pleased to announce it has successfully acted as the exclusive financial advisor to MEG Misr for Glass S.A.E., a fully owned subsidiary of Middle East Glass Manufacturing Company (“MEG”) (MEGM.CA) (www.megglass.com) on the acquisition of 100% of the share capital of Misr Glass Manufacturing Company S.A.E. (www.mgm-eg.com); a company specialized in the manufacturing and marketing of container glass for the food and beverage industry inside and outside Egypt. The transaction value is 735 Million Egyptian Pounds.
Middle East Glass Manufacturing Company is a diversified packaging group comprising Middle East Glass, a 117 tons per annum one-furnace container glass manufacturer, and Wadi Glass, a two-furnace container glass manufacturer, both Middle East Glass and Wadi Glass have a combined production capacity of 237 thousand tons per annum. In addition, MEG also has a 60% owned subsidiary, Medco Plast Company, the largest plastic bottles (PET) converter in the Egyptian market.
Misr Glass Manufacturing Company is the second largest container glass manufacturer in Egypt with three furnaces having a total production capacity of 141 thousand tons, producing glass containers in flint, amber and green colors catering for both local and export markets.
The acquisition of Misr Glass Manufacturing Company will allow Middle East Glass to further expand its production capacity, in order to continue servicing its growing local customers’ demand as well as increase its footprint and competitive position in the export markets.
HC Securities & Investment previously advised Middle East Glass on the acquisition of 60% of Medco Plast Company (2010), the acquisition of 100% of Wadi Glass (2014) and the private placement of a 36% stake to Gulf Capital, one of the leading private equity firms in the MENA region (2014).
Noha El Ghazaly, Executive Director – Investment Banking at HC Securities and Investment, commented on the transaction “We are proud to continue supporting MEG Group across several transactions contributing to achieving their strategic goals and participating in their value creation process”.