Indorama Ventures Public Co. Ltd. (IVL) has acquired a 74 percent stake in Egyptian packaging firm Medco Plast for Packing and Packaging Systems SAE, a subsidiary company of Middle East Glass Manufacturing Co. (MEG).
With a 25 percent market share, Medco Plast is the largest manufacturer of recyclable PET preforms, injection molded products and closures in Egypt, IVL said in a Nov. 14 news release.
The Dokki-based company has 11 production lines with an annual production capacity of 70 kilotonnes of PET performs per year, supplying to “all the multinational soft drink and water manufacturers” operating in the country.
IVL expects the acquisition to open the door to the East African PET packaging market, complementing its existing footprint in West Africa, where it has production in Nigeria and Ghana.
In addition, Medco has a strong presence in the Egyptian domestic market, which is one of the most developed and diversified economies in the Middle East, with an economic growth rate of 5 percent.
“The acquisition of Medco aligns with Indorama Ventures' strategic focus, which includes capitalizing on growth opportunities in emerging markets,” said Indorama CEO Aloke Lohia.
Medco Plast was 40 percent owned by Al Samaha Co., while Middle East Glass and Gulf Capital both had a 30 percent share. Following the acquisition, MEG will retain 16 percent of Medco Plast, and Samaha will own 10 percent.
Abdul Galil Besher, chairman of MEG, said his company would now focus more closely on its core glass container business.
“The successful sale ... highlights the appeal of the large Egyptian consumer market, the increasing confidence in the broader Egyptian economy and the resurgence of foreign direct investments into the country," said Karim El Solh, CEO of of Gulf Capital, which owns MEG.
