SIG Combibloc has agreed to acquire the remaining 50% stake in its Middle East & Africa (MEA) joint venture, SIG Combibloc Obeikan, taking its ownership of the carton packaging and filling machine supplier to 100%.
Under the terms of the deal, SIG Combibloc will acquire the 50% shareholding of its partner Obeikan Investment Group (OIG) in the two joint venture companies. SIG will fund the deal through selling 17.5 million shares and a cash consideration of €167 million.
SIG Combibloc Obeikan was established in 2001 as a 50:50 joint venture between SIG and OIG. The company supplies a range of SIG filling machines, aseptic carton sleeves and closures to customers in the MEA region – where it is present in 17 countries – from a manufacturing plant in Riyadh, Saudi Arabia.
Following completion of the transaction, the MEA business will become a full member of the SIG group and the plant will be fully integrated into SIG’s global production network.
The acquisition demonstrates SIG’s commitment to expanding its global footprint, as it aims to leverage growth opportunities in the local area.
In the twelve months ending 30 September 2020, SIG Combibloc Obeikan generated revenue of approximately €290 million.
Rolf Stangl, CEO of SIG, said: “I am very pleased to see this culmination of the strong relationship we have had with OIG over the years. This is a unique opportunity to acquire a high-quality asset which we know very well.
“SIG Combibloc Obeikan is a leading player in meeting the growing demand for aseptic cartons in MEA and will be an additional driver of growth in our portfolio.”
The completion of the transaction is subject to several customary closing conditions, including Saudi Arabia and certain other antitrust approvals.
Last year, SIG Combibloc agreed to acquire Visy Cartons, which produces SIG aseptic cartons for sale in Australia and New Zealand, for AUD 70 million ($48.2 million).
By Emma Upshall
Source: foodbev.com
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