Frigoglass Expands its Glass Operations Through the Acquisition of Jebel Ali Container Glass

Athens, Greece (April 19, 2011) – Frigoglass, the leading player in the global Ice Cold Merchandisers (Beverage Coolers) market and the largest glass bottle producer in West Africa, is pleased to announce today that it has reached an agreement to acquire 80% of the shareholding in the Dubai-based glass bottle and jar manufacturer, Jebel Ali Container Glass Factory Fze (JAG). 2 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.

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 68,000m2  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% 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 debt.

Frigoglass Glass Operations are based in Nigeria through the publically-traded Beta Glass PLC. With three furnaces and capacity exceeding 600 tons per day, Frigoglass is the largest manufacturer of glass bottles in West Africa. Sales are directed towards the local market and West African countries across a common customer base with its ICM business that consists of major beverage companies as well as domestic wine, pharmaceutical and cosmetic companies.

Petros Diamantides, Managing Director of Frigoglass, commented: “We are delighted to announce this significant opportunity to expand our Glass Operations and believe that Jebel Ali Glass offers a very attractive fit in terms of its strong technical expertise, long-standing customer relationships and attractive market presence, which will drive the continued growth of Frigoglass Glass Operations. The global glass container market is large and expanding, currently valued at approximately $27 billion. Through this deal, Frigoglass will be able to increase the geographic reach 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 outstripped supply in recent years.”