West African glass bottle producer Frigoglass Glass Operations has announced that it has reached an agreement to acquire 80% of the shareholding in Dubai-based Jebel Ali Container Glass Factory (JACGF) in a deal worth a reported US$6.8 million.
JACGF, situated in Dubai’s Jebel Ali Free Zone, has been a competitive player in the Middle East container glass market since it began operations in 1997. Its 68,000m2 plant, equipped with state-of-the-art equipment, has a capacity exceeding 360 tons per day and employs 340 people. The company achieved sales of $41.6 million in 2010.
The transaction, together with additional working capital requirements, is expected to be financed through new debt.
Nigeria-based Frigoglass operates three furnaces and has a daily capacity of more than 600 tons, making it the largest manufacturer of glass bottles in West Africa for major beverage companies as well as domestic wine, pharmaceutical and cosmetic companies.