Dubai Capital invests alongside Citadel in glass factory

The Dubai Holding-owned buyout firm and the Egyptian firm have partnered sealing another private equity deal in the increasingly active Egyptian buyout market.

Dubai Capital Group has bought a 49 percent stake in Sphinx Glass, a glass factory for AED730 million (€127.7 million; $199 million). 

Sphinx is a subsidiary of GlassWorks, established by Citadel Capital, an Egyptian buyout firm, in 2004 with other regional investors.

The investment is to fund a “greenfield project” allowing the company to produce 220,000 tons of float glass each year. Float glass is produced by pouring molten glass on liquid tin, forming glass sheets. Sphinx’s products are primarily used in the construction and the automotive industries.

Dubai Capital Group is a subsidiary of Dubai Holding, owned by Sheikh Mohammed bin Rashid al Maktoum, the ruler of Dubai.

Middle Eastern firms continue to invest regularly in Egypt as North Africa’s deal hub. Earlier this month Abraaj Capital, a United Arab Emirates buyout firm, bought a 76.9 percent stake in Al Borg Laboratory, the Egyptian-listed medical testing group for EGP778 million (€93.6 million; $145 million).

Last year Citadel led the consortium which sold the Egyptian Fertilizers Company for $1.41 billion in the largest buyout in the Middle East and North Africa region to an Abraaj-led consortium. As part of the deal Dubai Capital Group sold a 9.6 percent stake in the fertiliser company, and rebought a 15 percent stake alongside Abraaj.