Abdulla bin Fahad al-Marri with Prince Faisal bin Salaman bin Abdulaziz among others during the Riyadh ceremony.
Qatar First Investment Bank (QFIB) has successfully exited the Emirates National Factory of Plastic Industries (ENPI Group) by selling its majority stake in the UAE firm to Saudi Printing & Packaging Company (SPPC).
QFIB’s 71.3% stake in ENPI was sold to SPPC, a publicly-traded Saudi firm that specialises in providing printing packaging solutions.
ENPI Group is the leading producer of flexible and rigid plastic packaging solutions having a strong manufacturing base with some eight factories in Sharjah, Abu Dhabi and Riyadh.
As part of the deal, QFIB will retain FutureCard and TechnoCard, which form the technology businesses of ENPI.
FutureCard is the leading manufacturer of smart cards with expertise in designing, manufacturing and customisation of all types of cards. FutureCard has a client base of more than 500 customers in some 80 countries.
The acquisition was announced at the Saudi Research & Marketing Group’s headquarters in Riyadh at a ceremony attended by Prince Fasial bin Salaman bin Abdulaziz and a number of high-ranking officials from Saudi, Qatar and the UAE.
QFIB acquired a 71.3% stake in ENPI Group in July 2009 and since then played an instrumental role in cementing ENPI’s position as a leading player in the plastic packaging solutions industry by streamlining the business, institutionalising operations and expanding ENPI’s manufacturing base to include Abu Dhabi and Saudi Arabia.
QFIB chairman Abdulla bin Fahad al-Marri said the investment bank’s business strategy focuses on investing in companies that demonstrate positive growth potential. ENPI had such capabilities.
“During our holding period, ENPI managed to successfully grow and expand where its revenue has more than doubled since our acquisition,” al-Marri said.
“We are pleased with the successful exit of ENPI, which has generated for the bank an IRR of 31%,” he added.
Emad Mansour, QFIB chief executive officer said: “ENPI represents the typical size and sector that we target in our investment strategy. From the outset we worked closely with ENPI’s management team to effectively implement strategic growth plans and streamline the company’s operations.
“Our successful exit of ENPI is a testament to our ability to grow our portfolio companies, in-spite of difficult market conditions, while generating sound returns for our investors.
“We would like to thank Nizar Rajoub, ENPI’s Founder and CEO, for his unwavering commitment to growing the business and establishing ENPI as a regional player in the plastic conversion manufacturing sector,” added Mansour
Nizar Rajoub, ENPI founder and CEO said, “We thank QFIB for their valuable expertise and insight during this important phase of ENPI group’s business cycle. QFIB shared our vision and strongly believed in the company’s growth potential.
“QFIB played a critical role in helping ENPI build the foundations for the next phase of our growth. We are looking forward to working with SPPC to further cement the position of ENPI Group as a leading provider of plastic packaging solutions.”
Saad al-Azwari, board member and SPPC CEO said, “It was a pleasure to work with QFIB on the structuring of this transaction. QFIB’s team demonstrated professionalism and commitment throughout the negotiation process.
“This acquisition is part of our strategy to pursue inorganic growth opportunities. We are very excited to add ENPI to our portfolio of businesses and look forward to fully leverage the potential synergies and growth opportunities from this acquisition.”