A Billionaire Scion’s Bold Move: Jonathan Oppenheimer Takes Over Leading Nigerian Can Manufacturing Company
Jonathan Oppenheimer, the son of South African billionaire Nicky Oppenheimer, has recently completed a substantial business transaction by acquiring full control of Nigeria’s largest beverage can-maker. This bold move reflects a strong expression of confidence in the resurgence of Africa’s largest economy.
The acquisition was executed by Oppenheimer Partners Ltd. purchasing shares in GZ Industries Ltd. from Affirma Capital, formerly known as Standard Chartered Private Equity. This transaction has positioned Oppenheimer to wield significant influence over GZI’s expansion in sub-Saharan Africa.
Oppenheimer Partners initially invested in GZI in 2018 during the company’s construction of a factory in South Africa. This investment has propelled GZI to secure a market share of approximately 20%, establishing a formidable presence in the industry.
According to a statement from Affirma, the private equity firm previously held a 37.5% stake in GZ Industries Ltd. and has now divested its shares to Oppenheimer Partners Ltd. Although specific financial details of the acquisition were not disclosed, this development signifies a substantial shift in the ownership structure of the can-manufacturing company.
The strategic acquisition positions Jonathan Oppenheimer, whose family has played a pivotal role in founding mining giant Anglo American Plc and transforming De Beers into the world’s largest diamond producer, to exert significant influence over GZI’s expansion in the sub-Saharan African region.
This move comes at a significant juncture, as urban-educated adults in the region have the highest consumption of sugary drinks globally, with an average of about 12.4 servings per week based on research published by Nature Communications. With GZI being a major supplier of cans to companies like Coca-Cola Co, this acquisition holds significant potential for growth and market impact.
Notably, GZI boasts an annual production of 3 billion aluminium cans within the African market, making it a key player in the industry. Furthermore, GZI has been engaging in competition with the loss-making Nampak Ltd. and has been strategically divesting assets and restructuring debt to further fortify its position in the market.
Jonathan Oppenheimer’s interest in Nigeria’s largest beverage can maker is pivotal, as the country endeavours to revive its economy. The government has been implementing measures to address challenges such as double taxation and slow remittances of foreign funds, in an effort to counter the decline in capital inflow into the country.
Affirma Capital, the private equity firm that relinquished its stake in GZI to Oppenheimer Partners Ltd., has a track record of successful investments in African companies, with returns exceeding $800 million for investors. Therefore, Jonathan Oppenheimer’s strategic move represents a significant development in the African business landscape and contributes to the burgeoning economic activities in the region.
Finally, the Oppenheimer family possesses a combined net worth of $9.4 billion, largely attributed to the sale of their stake in De Beers for about $5 billion in 2012. With this substantial wealth and a strong history of successful business ventures, Jonathan Oppenheimer’s acquisition of GZ Industries Ltd. signifies a noteworthy milestone in his entrepreneurial journey.
