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Monday, November 19, 2018
Gulf Capital’s portfolio company, Middle East Glass (MEG), successfully sold a 74% stake in its petrochemical (PET) subsidiary, Medco Plast for Packing and Wrapping Systems in Egypt, to Indorama Ventures Public Company Limited (IVL).
Medco Plast is a leading manufacturer of PET preforms, injection molded products and closures for local and multinational clients, primarily in the carbonated soft drinks, bottled water and dairy segments. The company has a production capacity of 60,000 mtpa of PET preforms.
Gulf Capital worked closely, through its investment in Middle East Glass, with Medco Plast’s management team to cement the company’s position as a leader in the beverage preform market, to expand its export business and diversify its product offerings into edible oil closures, cosmetics and detergents packaging. During Gulf Capital’s ownership period, Medco Plast increased its revenues by a compound annual growth rate (CAGR) of 28% and its EBITDA profitability by 26%.
Dr. Karim El Solh, Chief Executive Officer of Gulf Capital and Board Member of MEG, said: “We have enjoyed working and partnering with the talented team at Medco Plast. We were particularly pleased to have partnered with the Managing Director of Medco Plast, Mr. Mohammad Samaha as well as delighted with the very close collaboration with our co-shareholders in MEG, MENA Glass Holdings Limited. The strategy of expanding the company aggressively across new sectors and geographies has firmly positioned Medco Plast as a leader in the preforms market in the Middle East. The company today has a state-of-the-art production facility and a strong management team and is well positioned to continue its impressive growth trajectory under the new ownership of Indorama. The investment in Medco Plast and the company’s strong growth during our ownership period demonstrate Gulf Capital’s ability to back local companies and to transform them into market leaders across emerging markets. The successful sale of a 74% stake in Medco Plast to a global strategic buyer of the caliber of Indorama 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.”
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