Indorama acquires 74% stake in Medco Plast

Daily News Egypt
2 Min Read

Thai petrochemicals producer Indorama Ventures Public Company Limited (IVL) has acquired 74% of the share capital of Egypt’s Medco Plast for Packing and Packaging Systems for EGP 843m from Gulf Capital’s portfolio company Middle East Glass (MEG) on Wednesday. HC Securities and Investment acted as the sole broker for both parties in the deal.

MEG and Samaha family, which are the primary shareholders, will retain 16% and 10% shares in Medco Plast respectively.

Medco Plast is a leading manufacturer of PET preforms, injection moulded products, and closures for local and multinational clients, primarily in carbonated soft drinks, bottled water and dairy segments. Under Gulf Capital company, Medco Plast increased its revenues by a compound annual growth rate of 28%, as well as its EBITDA profitability by 26%.

“We have enjoyed working and partnering with the talented team at Medco Plast. We were particularly pleased to have partnered with the Managing Director of Medco Plast, Mohammad Samaha, and delighted with the very close collaboration with our co-shareholders in MEG,” Karim El Solh, CEO of Gulf Capital and board member of MEG, said.

“The successful sale of a 74% stake in Medco Plast to a global strategic buyer of the calibre of Indorama highlights the appeal of the large Egyptian consumer market, the increasing confidence in the broader Egyptian economy, and the resurgence of foreign direct investments into the country,” he added.

Indorama operates in 30 countries and was listed on Thailand’s Stock Exchange.

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