AptarGroup Inc. is adding manufacturing capacity in the Middle East with the purchase of an existing closure maker.
The company acquired majority control of Gulf Closures of Sitra, Bahrain, a facility with about 60 workers supplying products to both local and global brands in the Persian Gulf and becomes company's first closure manufacturing facility in the region.
Aptar said the company started focusing on the Middle East four years ago with the opening of a sales office in Dubai.
"This acquisition will further accelerate our strategy in the region, now with a local manufacturing footprint. We look forward to building on Gulf Closures' capacity and expertise to better serve our current customers in the region and to open new market opportunities," said Hedi Tlili, president of the company's Aptar Closures segment, in a statement.
Gulf Closures provides products to companies in the Middle East and Africa.
"With the acquisition, Aptar Closures will leverage its global business capabilities and Gulf Closures' manufacturing expertise, regional network, and experienced team to better serve the company's existing customers in the Middle East, while opening new market opportunities and strengthening its presence in the region," the company said in a statement.
Gulf Closures provides closures, capping machines, bottle changing parts and services. The firm, with a capacity to produce 2 billion caps per year, calls itself a major supplier to Coca-Cola Co. and PepsiCo Inc., according to the company's website.
"We will benefit from Aptar's global presence and seasoned perspective of value-chain ecosystems, and we will be working together closely to develop winning solutions to scale up and accelerate Gulf Closures' operational growth and serve the needs of our existing and future clients," said Hamid AlZayani, founder of the investment firm, in a statement.
He pointed to Aptar's manufacturing experience and "veteran understanding" of the regional market as well as the company's manufacturing expertise as reasons to make move.
Aptar, of Crystal Lake, Ill., ranks fourth in the latest Plastics News list of injection molders in North America with estimated molding sales of $980 million. The company, which also has pharmaceutical and beauty divisions along with the closures unit, reported global sales of $3.3 billion for 2022.