The Oppenheimer family, known as South Africa’s second richest, has secured controlling stakes in GZ Industries Ltd., a prominent beverage can manufacturer in Nigeria.
The Strategic Acquisition:
Jonathan Oppenheimer, son of the family patriarch Nicky Oppenheimer, orchestrated the full acquisition of GZ Industries, signaling a strategic bet on the potential revitalization of Nigeria’s economy. The acquisition involved securing the remaining shares from Affirma Capital, previously known as Standard Chartered Private Equity.
Key Details of the Deal:
While the specific financial details of the transaction remain undisclosed, it’s notable that Affirma Capital held a substantial 37.5% stake in GZ Industries. The can manufacturer is a crucial supplier to major entities like Coca-Cola Co., having commenced operations in Nigeria in 2019 under the leadership of Executive Director Ayodeji Adelakun.
Empowering GZ Industries’ Expansion:
This strategic move empowers Jonathan Oppenheimer to steer GZ Industries’ expansion’s trajectory within sub-Saharan Africa, a region identified as a pivotal market for sugary drinks consumption. Research indicates that urban, educated adults in this region have the highest consumption globally, averaging 12.4 servings per week.
History of Oppenheimer Partners’ Involvement:
Oppenheimer Partners initially entered the GZI venture in 2018, coinciding with the building of a GZI factory in South Africa. Currently holding a 20% market share in South Africa, GZI competes with Nampak Ltd., which is undergoing asset sales and debt restructuring.
GZ Industries’ Production Capacity:
GZ Industries boasts significant production capacity, producing 3 billion aluminum cans annually in Africa. Out of this, a substantial 1.8 billion cans are manufactured in Nigeria, highlighting the company’s pivotal role in the local market.
Aligning with Nigeria’s Economic Landscape:
The Oppenheimer family’s move aligns with Nigerian President, Bola Tinubu’s ambitious 2024 spending plans of N27.5 trillion naira ($34 billion). These plans aim to foster job-rich economic growth and create a favorable investment environment, reflecting the broader economic landscape in which GZI is strategically positioned.
The Oppenheimer Family’s Financial Standing:
With a combined net worth of $9.4 billion, the Oppenheimer family’s wealth primarily stems from the 2012 sale of their stake in De Beers for approximately $5 billion. This latest move underscores the family’s commitment to shaping industries that align with Africa’s growth potential.