Qalaa Holdings, CPC mark Sphinx Glass transaction completion

Construction Products Holding Company (CPC) and Qalaa Holdings recently marked the completion of their 1.3 billion Egyptian pounds ($180 million) transaction on Sphinx Glass.
The celebration marked the conclusion of a transaction through which Saudi Arabia’s CPC (through its subsidiary CPC International) acquired major Egyptian float glass manufacturer Sphinx Glass for an equity 816 million pounds ($114.2 million) for 100 percent of the shares of Sphinx, noting that the total enterprise value is 1.3 billion pounds ($180 million); the difference is due to the deduction of debt and liabilities to be assumed by CPC.
“Qalaa Holdings has developed a state-of-the-art plant that serves domestic and international markets,” said Saleh Binladen, chairman of CPC, Saudi Arabia’s largest manufacturer of building materials.
“This key acquisition comes at a time when CPC is expanding into the very promising African market and I am confident that this acquisition will position CPC as one of the major players in the glass and aluminum sectors in the region,” said Mu’taz Sawwaf, vice chairman and non-executive member of the board of directors.
“We have entrusted a gem in the manufacturing sector to a strong new corporate parent,” said Ahmed Heikal, chairman and founder of Qalaa Holdings, an African leader in infrastructure and industry.
Qalaa Holdings Co-Founder and MD Hisham El-Khazindar said: “With the closure of this transaction, we have just marked the most significant exit to-date under our transformation program.”
Binladen, Heikal, El-Khazindar and Sawwaf attended together the ceremony, where they were joined by Minister of Trade and Industry Mounir Fakhry Abdelnour and Minister of Investment Ashraf Salman.
Qalaa held a 73.3 percent stake in Sphinx Glass, with the result being cash proceeds of around 508 million pounds ($73 million) to Qalaa after the estimated capital gains tax.