Frigoglass, the largest glass bottle producer in West Africa, has announced that it has reached an agreement to acquire 80% of the shareholding in Dubai-based glass bottle and jar manufacturer, Jebel Ali Container Glass Factory (JAG). Located in the Jebel Ali Free Zone and in operation since 1997, JAG has been a competitive player in international markets with exports to South and East Africa, Asia and Europe. JAG's facility has 340 employees with state-of-the-art machinery and equipment, including an energy-efficient SORG end-fired twin-pass regenerative furnace with capacity exceeding 360/tpd. In 2010, JAG achieved sales of US$41.6M. Frigogalss will acquire 80% of Jebel Ali for US$6.8M cash, assuming US$23M net debt. The transaction, together with additional working capital requirements, is expected to be financed through new debt. Frigoglass operations in Nigeria, has 3 furnaces and capacity exceeding 600/tpd. With this deal, the company will be able to increase geographic coverage of its glass business to Europe, as well as to fast growth markets such as East and South Africa and Asia, where demand for glass containers has consistently out stripped supply in recent years.
