Gulf Capital's portfolio company Middle East Glass has acquired 100% of Misr Glass Manufacturing (MGM), a company that specialises in the manufacturing and marketing of container glass for the food and beverage industry in Egypt.

This acquisition creates the largest glass packaging manufacturer not only in Egypt but also in the MENA region and establishes a solid ground for further growth, including cross-border regional and international expansion.

The company is a worldwide approved supplier of glass bottles for Coca-Cola, an approved supplier for Pepsi, Nestle and other major beverage producers locally and regionally.

Dr. Karim El Solh, CEO of Gulf Capital , said: "MEG is rapidly positioning itself as the largest Arab glass packaging manufacturer, both through organic growth and through acquisitions. This latest acquisition of Misr Glass Manufacturing gives the combined businesses significant scale and allows MEG to increase its share of exports."

"The investment in MEG and MGM fits with our strategy to partner with exciting local companies and to grow them into regional and global leaders. It also allows us to make indirectly a strategic investment in the fast growing Egyptian consumer market," he added.

The MGM acquisition will create significant operating leverage and production opportunities across the combined platform.

The local integration of glass operations will realise operational efficiencies and procurement synergies.

With six furnaces, the enlarged platform will effectively manage its production capacity and deliver better flexibility, faster response time and higher service to its customers.

The acquisition will provide MEG with significant capacity enabling it to expand its export base into new markets.

Abdul Galil Besher, Chairman of Middle East Glass, said: "With this latest acquisition, Middle East Glass will become the leading glass packaging manufacturer in Egypt with a strong platform to accelerate our export led growth to our traditional regional food and beverage customers and beyond. Misr Glass Manufacturing brings a strong customer base in our target markets, an attractive portfolio of products and flexible production capacity and will add depth to our leadership team. We are very confident that the acquisition will create significant value for all MEG stakeholders."

MEG , a leading diversified packaging group, was established in 1979.

It has grown into Egypt's largest glass manufacturer, starting as a 117,000 tonne per annum one-furnace glass manufacturer and, through a strong programme of acquisitions, culminated into a six-furnace operation with a production capacity of 378,000 tonnes per annum.

MEG is an approved supplier of multinational companies such as Coca-Cola, Pepsi and Nestle and is positioned to grow its exports in regional and international markets, given its expanded capacity and product range.

Tarek Mounib, Executive Director, Private Equity at Gulf Capital, said: "MEG has a significant cost advantage relative to international peers due to its lower cost base and access to local raw materials, translating into a competitive export advantage with rewarding margins. Egypt is therefore a very attractive market from which to export internationally. The MEG platform plans to yield significant human capital efficiencies by focusing on initiatives in training and development of all personnel across the plants."