M&As: Indorama acquires 74% in Medco Plast; Golden Gate buys Active Minerals

Thailand-based integrated chemicals firm Indorama Ventures Public Company Limited (IVL) has completed the acquisition of 74% of the share capital of Medco Plast for Packing and Packaging Systems S.A.E. (Medco Plast) from Middle East Glass Manufacturing Co. S.A.E. (MEG) and the Samaha family. Following the acquisition, MEG will retain a 16% shareholding in Medco Plast, and the Samaha family 10%.

Medco Plast is the largest manufacturer of recyclable PET preforms, injection molded products, and closures to all the multinational soft drink and water manufacturers operating in Egypt, with a 25% market share. Medco Plast currently has 11 production lines with a combined production capacity of 70,000 tonnes/year of PET preforms.

Egypt is one of the most developed and diversified economies in the Middle East, with economic growth of around 5%. Egypt’s membership of COMESA regional economic bloc, coupled with its strategic location linking the EMEA and Asia, makes the country the gateway to the East and North African markets with favourable trade agreements. This acquisition will provide Indorama Ventures exposure to the East African PET packaging market, complementing its existing footprint in West Africa, where the company has presence in Nigeria and Ghana.

In other news, US private equity firm Golden Gate Capital has completed the acquisition of Active Minerals International (AMI) from Merit Capital Partners. AMI will continue to be led by its current management team, including President/CEO Dennis Parker. Management will retain a significant ownership stake in the business. Financial terms of the transaction were not disclosed.

Founded in 1964, AMI is a global producer and distributor of specialty industrial minerals, including kaolin and gel quality attapulgite clay minerals. AMI is headquartered in Sparks, Maryland, US, and has regional offices in China, Taiwan, Mexico and Australia. The company’s products are sold globally for industrial, agricultural and construction-related applications.

Golden Gate Capital is a San Francisco-based private equity investment firm with over US$15 billion of capital under management.

(PRA)

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