Gulf Capital Sells Strategic Stake in Middle East Glass Following Significant Growth
Gulf Capital, one of the largest private equity firms operating from the GCC to the rest of Asia, announced today the sale of its strategic stake in Egypt-listed Middle East Glass S.A.E. (MEG) to MENA Glass Holdings Limited, the majority shareholder. During Gulf Capital's holding period, MEG achieved a remarkable threefold increase in revenue and a 50% increase in profit margins, solidifying its position as the largest glass container manufacturer in the Middle East and the second-largest in Africa.
Under Gulf Capital’s ownership, MEG expanded its operations significantly, doubling its production capacity and increasing the number of export markets by three times to over 25 countries. The company now operates three state-of-the-art facilities with 17 production lines and six furnaces, with an annual operating capacity of over 385,000 metric tons, up from 197,000 metric tons at entry. MEG serves high-growth industries, including food, beverage, and pharmaceuticals, and is one of Egypt’s top five exporters.
Dr. Karim El Solh, Co-Founder and CEO of Gulf Capital, highlighted the success of the partnership, stating, “MEG is a prime example of our ambitious ‘buy-and-build’ strategy. Through a clear operational improvement strategy, including several mergers and acquisitions, MEG achieved record revenues and profitability, reinforcing its market-leading position. This investment was aligned with sustainability trends and the growing awareness of recycling in the region.”
During its partnership with Gulf Capital, MEG led the consolidation of the glass manufacturing industry, acquiring Wadi Glass and Misr Glass Manufacturing (MGM). The company also secured $100 million in debt financing from the International Finance Corporation (IFC) to fund capital expenditure and optimize processes with the latest manufacturing and waste reduction technologies.
Abdul Galil Besher, Chairman of Middle East Glass, expressed gratitude for Gulf Capital's support, stating, “Our partnership has accelerated our growth and strengthened our regional market leadership. MEG is now firmly established as the leading glass container manufacturer in the Middle East and North Africa.”
Asaad Salhab, Senior Operating Partner at Gulf Capital, added, “The disciplined execution of our value creation plan by MEG’s management has resulted in record-high operating metrics and profitability, positioning MEG for future growth while maintaining its status as the only glass manufacturer in Egypt that undergoes cullet treatment, reducing waste levels.”
Glass packaging is expected to outgrow other solutions due to its sustainable business practices. As a fully recyclable and reusable material, glass offers an environmentally friendly alternative to other packaging solutions.
Tawfik Laham, CEO of Middle East Glass, emphasized the importance of Gulf Capital’s active role in MEG’s success, stating, “Gulf Capital has been instrumental in helping MEG achieve its goal of becoming the largest glass container manufacturer in the region, driving strategic initiatives that strengthened our customer base and diversified our product and sector offerings.”
Gulf Capital was advised on financial matters by Arqaam Capital and on legal matters by White & Case. MENA Glass Holdings Limited received legal advice from MENA Associates in association with AMERELLER and Bahaa-Eldin Law Office in cooperation with BonelliErede.
