The transaction forms part of SIG’s plan to expand its global presence while enhancing its medium and long-term growth outlook
SIG Combibloc has agreed to acquire the remaining 50% stake in the Middle East & Africa (MEA) joint venture, SIG Combibloc Obeikan, from partner Obeikan Investment Group (OIG).
As part of the deal, OIG will receive about 17.5 million SIG shares and €167m in cash for the sale of the stake in SIG Combibloc Obeikan.
Established in 2001, SIG Combibloc Obeikan is a 50:50 joint venture between SIG and OIG.
With a manufacturing plant in Riyadh, Saudi Arabia, SIG Combibloc Obeikan is engaged in supplying a range of SIG filling machines, aseptic carton sleeves and closures to customers in the MEA region.
The deal forms part of SIG’s plan to expand its global presence while enhancing its medium and long-term growth outlook.
SIG said: “As a full member of the SIG group, the MEA business will be even better positioned to tap into SIG’s experience in developing consumer-centric and innovative solutions for its customers.”
Upon completion of the deal, the MEA business will become a full member of the SIG group while the manufacturing plant is planned to be fully integrated into SIG’s global production network.
SIG CEO Rolf Stangl 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 transaction is subject to several customary closing conditions, including Saudi Arabia and certain other antitrust approvals.
Goldman Sachs International served as exclusive financial advisor to SIG for the transaction, Bär & Karrer and Latham & Watkins acted as legal advisors.