Vantage Capital has provided $45 million in mezzanine debt financing to Egyptian specialty paints and coatings producer International Group for Modern Coatings (MIDO), in one of the country’s largest mezzanine debt transactions.

Omar Gharbawi, Associate Partner at Vantage Capital, said MIDO had demonstrated resilience despite difficult economic and geopolitical conditions.

“Management has built the company from the ground up into one of Egypt’s top three specialty coatings players, with products now sold in more than 50 countries,” he said.

“We believe MIDO is only beginning to realise its full potential, and we are delighted to back the leadership team as they embark on this next phase of growth.”

The funding will be used to refinance existing debt and provide working capital, allowing the company to expand production capacity.

The deal marks Vantage Capital’s third investment in Egypt and its 41st investment across its mezzanine funds, with portfolio companies spanning 11 African countries.

Founded in 1979 by Dr Aly Ghaly, MIDO has grown into a major manufacturer of specialty coatings, producing more than 1,200 stock keeping units across automotive refinish paints, wood coatings, polyester resins, adhesives and industrial products.

The company operates two vertically integrated manufacturing facilities in Alexandria with a combined annual production capacity of more than 100,000 tonnes.

MIDO exports to more than 50 countries, with Africa as its main export market, alongside sales into the Gulf, Europe, Asia and the United States.

The business has also entered private label and manufacturing partnerships with international coatings groups including Nippon Paints, Kansai Paints and Yatu Paints.

MIDO’s management team will remain in place following the transaction. Founder Dr Aly Ghaly continues as chairman, while Ramy Galal, a member of the founding family, remains chief executive.

“Our key differentiators are our manufacturing infrastructure, R&D capabilities, distribution relationships, and strong brand equity,” said Galal.

“Vantage Capital’s funding now gives us the firepower to unlock substantial latent capacity in our facilities and accelerate both our local and export growth ambitions.”

Vantage Capital said the investment is expected to support foreign currency earnings for Egypt through exports while creating skilled jobs in manufacturing, research and development, sales and logistics.

The financing is also expected to help increase local production of specialty coatings, reducing reliance on imports.

Warren van der Merwe, Managing Partner at Vantage Capital, said Egypt remained an important market due to its population size, industrial base and growing role in regional trade.

“This transaction reflects our conviction in the country’s potential and our commitment to backing its strongest entrepreneurs and businesses,” he said.

Matouk Bassiouny and Werksmans advised Vantage Capital on the transaction, while Adsero acted for MIDO. PwC Middle East, Emerton and SLR were also part of Vantage’s advisory group.