GZI to acquire Frigoglass’ Glass Operations

Frigoglass SAIC has announced that it has entered into an agreement to sell its Glass Operations to GZI Mauritius Limited. GZI is the holding company of GZ Industries Limited, a beverage can manufacturer in West Africa with manufacturing operations in Nigeria, which is now expanding into Kenya.

The operations being sold consist of all of Frigoglass’ glass container operations in Nigeria and Dubai as well as the complementary plastic crates and metal crowns businesses in Nigeria (“Glass Operations”). Frigoglass has also reached an agreement to acquire the minority interest in its Frigoglass Jebel Ali business based in Dubai, which will also be part of this transaction.

The net cash consideration to be received by Frigoglass for the disposal of the Glass Operations has been agreed to be US$225 million (€200 million at the current exchange rates).

The transaction is subject to GZI’s receipt of committed financing and other customary conditions and is expected to be completed in the second half of 2015. Substantially all of the gross proceeds, after deducting transaction related fees and expenses, received by Frigoglass will be applied towards debt reduction.

Harry David, chairman of Frigoglass Board of Directors, says, “After an extensive strategic review process, we are pleased to announce that we reached an agreement to sell the Glass business to GZI. The proceeds from the disposal will significantly delever our balance sheet and will allow us to focus on the full growth potential of our core global Cooler business. We believe GZI and its leading shareholders, including Standard Chartered Private Equity, are well placed to acquire and further grow a very successful glass business and they are the optimal partner to ensure continuity of quality and overall service support to our customers.”

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