Frigoglass, a glass bottle producer in West
Africa, has reached an agreement to acquire 80 percent of the
shareholding in the Dubai-based glass bottle and jar manufacturer,
Jebel Ali Container Glass Factory Fze (JAG).
JAG is located in the Jebel Ali Free Zone
and produces glass bottles and jars for beverage and food companies.
Since the start of operations in 1997, JAG has been a competitive
player in the international market with exports to South and
East Africa, which provides a complementary regional fit for
the Frigoglass glass operations currently focused in West Africa.
Furthermore, JAG exports to Asia, the fastest growing market
for glass, and to Europe, thus providing Frigoglass the opportunity
to capitalize on its strong position in several markets and to
further strengthen its customer relationships in these regions.
Within its facility, JAG houses state-of-the-art
machinery and equipment including the Sorg end-fired twin-pass
regenerative furnace, which was commissioned in 2009 and is highly
energy efficient with a capacity exceeding 360 tons per day.
Currently, the total number of employees
is 340 people with strong technical experience. JAG achieved
sales of $41.6 million in 2010.
Frigoglass will acquire 80 percent of Jebel
Ali for a cash consideration of $6.8 million assuming net debt
of $23 million. The transaction, together with additional working
capital requirements, is expected to be financed through new