SIG to take full ownership of SIG Combibloc Obeikan
Image credit: Obeikan Investment Group
SIG Combibloc has signed an agreement to take full ownership of its Middle East & Africa joint venture SIG Combibloc Obeikan by acquiring the 50% shareholding of its partner Obeikan Investment Group (OIG) in the two joint venture companies. The completion of the transaction is subject to several customary closing conditions, including Saudi Arabia and certain other antitrust approvals. The acquisition will expand SIG’s global presence and enhance its medium and long term growth outlook.
The transaction is a continuation of SIG’s strategy for expanding its global footprint by entering new geographies. As a full member of the SIG group, the Middle East & Africa (MEA) business will be even better positioned to tap into SIG’s experience in developing consumer-centric and innovative solutions for its customers. SIG Combibloc Obeikan supplies customers in MEA from a full scale manufacturing plant in Riyadh, Saudi Arabia, which will be fully integrated into SIG’s global production network.
To build on the success of the trusted partnership over the last 19 years and to continue to benefit from the strong local presence and expertise of OIG, Abdallah Al Obeikan, chief executive officer of OIG and currently chief executive officer of SIG Combibloc Obeikan, will be nominated for election to SIG’s Board of Directors at the next Annual General Meeting, subject to completion of the acquisition prior to the Annual General Meeting and other customary conditions. Abdelghany Eladib, currently chief operating officer of SIG Combibloc Obeikan, will join SIG’s Group Executive Board as president & general manager, Middle East & Africa, subject to and as of completion of the acquisition.
Rolf Stangl, chief executive officer 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. Acquiring full ownership of the joint venture demonstrates our strong commitment to further expanding the business in the Middle East and Africa.”
Samuel Sigrist, chief financial officer and chairman of SIG Combibloc Obeikan, said: “We are delighted to welcome SIG Combibloc Obeikan as a full member of the SIG family and are looking forward to pursuing additional growth opportunities together. The strong MEA footprint built over the years will be further strengthened as we expand our product offering and geographic reach.”