Frigoglass, the largest glass bottle producer in West Africa and leading player in the global Ice Cold Merchandisers (Beverage Coolers) market, has announced that it has reached an agreement to acquir…
Frigoglass, the largest glass bottle producer in West Africa and leading player in the global Ice Cold Merchandisers (Beverage Coolers) market, has announced that it has reached an agreement to acquire 80% of the shareholding in the Dubai-based glass bottle and jar manufacturer, Jebel Ali Container Glass Factory Fze (JAG). JAG is located in the Jebel Ali Free Zone and, since the start of operations in 1997, has been a competitive player in the international market with exports to South and East Africa, Asia and Europe. JAG has a 68,000 sq.m. facility with state-of-the-art machinery and equipment, including a highly energy efficient Sorg end-fired twin-pass regenerative furnace with a capacity exceeding 360 tons per day, and 340 employees. JAG achieved sales of USD 41.6 million in 2010. Frigoglass will acquire 80% of Jebel Ali for USD 6.8 million cash, assuming USD 23 million net debt. The transaction, together with additional working capital requirements, is expected to be financed through new debt. Frigoglass Glass Operations, based in Nigeria, has three furnaces and capacity exceeding 600 tons per day, making the company the largest manufacturer of glass bottles in West Africa for major beverage companies as well as domestic wine, pharmaceutical and cosmetic companies. Petros Diamantides, managing director of Frigoglass, commented: We are delighted to announce this significant opportunity to expand our Glass Operations and believe that Jebel Ali Glass offers a very attractive fit in terms of its strong technical expertise, long-standing customer relationships and attractive market presence, which will drive the continued growth of Frigoglass Glass Operations. The global glass container market is large and expanding, currently valued at approximately USD 27 billion. Frigoglass will, with this deal, be able to increase the geographic coverage of its glass business to Europe, as well as to fast growth markets such as East and South Africa and Asia, where demand for glass containers has consistently outstripped supply in recent years.