Glass manufacturer Frigoglass is to sell its Glass Operations business to GZI Mauritius Limited (GZI).
GZI is the holding company of GZ Industries Limited, the largest 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 its plastic crates and metal crowns businesses in Nigeria.
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 the transaction.
The Glass Operations management team and employees will be transferred with the business on disposal. The business has 1,588 employees in Nigeria and Dubai.
The acquisition is valued at USD 225 million (EUR 200 million at the current exchange rates). USD 200 million of the consideration will be payable in cash on completion of the transaction with a further USD 25 million cash being payable in two tranches over the following two years.
The transaction is expected to be completed in the second half of 2015.
Harry David, Chairman of Frigoglass board of directors, said: “The proceeds from the disposal will significantly de-lever our balance sheet and will allow us to focus on the full growth potential of our core global Cooler business.
Motti Goldmintz, GZI’s CEO said “together with our strong aluminium can business, the acquisition of the Frigoglass glass, plastic crates and bottle crowns businesses, allows us to provide our market leading beverage customers with a complete range of packaging solutions.”