Oppenheimer Partners Ltd., a global investment firm, has acquired the entire shareholding of GZ Industries Ltd., Nigeria’s largest beverage can manufacturer, from Affirma Capital.
The acquisition positions Oppenheimer to influence GZI’s expansion in sub-Saharan Africa 1. GZI is a supplier of cans to companies such as Coca-Cola Co1. The Oppenheimer family has a combined net worth of $9.4 billion, largely thanks to the sale of its stake in De Beers in 2012 for about $5 billion.
Oppenheimer Partners Ltd. bought the shares it did not own in GZ Industries Ltd. from Affirma Capital, formerly known as Standard Chartered Private Equity, according to a statement from Affirma on Thursday, which did not disclose financial details.
The private equity firm had a 37.5% stake in supplying cans to companies such as Coca-Cola Co, Bloomberg reported.
The acquisition positions Oppenheimer, whose family played a major role in founding mining giant Anglo American Plc and transforming De Beers into the world’s largest diamond producer, to influence GZI’s expansion into sub-Saharan Africa.
Educated adults in the region’s cities have the highest consumption of sugar-sweetened beverages worldwide, with an average of 12.4 servings per week, according to research published by Nature Communications.
Oppenheimer Partners initially invested in GZI in 2018 during the construction of a South African factory, where the company now has a market share of around 20%. GZI, which competes with loss-making Nampak Ltd., has been strategically selling assets and restructuring debt. Affirma first entered the scene by investing in GZI in 2012.
In particular, GZI has an annual production of 3 billion aluminum cans in the African market.
Oppenheimer’s interest in Nigeria’s largest beverage can maker comes at a time when the country is trying to revitalize its crippled economy. In light of this, the administration has been implementing measures aimed at eliminating double taxation and facilitating quick remittances of foreign funds to counteract the decline in capital inflows into the country.
Affirma has invested in 11 African companies since 2008 and has successfully completed exits from eight of them, delivering returns in excess of $800 million to investors.
