The Acquisition of Nigeria’s Top Can Manufacturing Company by Billionaire Heir Jonathan Oppenheimer
Jonathan Oppenheimer, the scion of South African magnate Nicky Oppenheimer, has recently assumed complete control of Nigeria’s largest producer of beverage cans, exhibiting confidence in the rejuvenation of the continent’s largest economy.
Oppenheimer Partners Ltd. has successfully acquired the outstanding shares in GZ Industries Ltd. from Affirma Capital, formerly known as Standard Chartered Private Equity. This acquisition grants Oppenheimer a pivotal role in the expansion of GZI within sub-Saharan Africa.
The initial investment by Oppenheimer Partners in GZI occurred in 2018, coinciding with the establishment of a manufacturing plant in South Africa. Presently, the corporation commands a substantial 20% market share in the region.
The details of the acquisition of shares from Affirma Capital have not been publicly disclosed. However, it is public knowledge that the aforementioned private equity firm previously held a 37.5% stake in GZI, a key supplier of cans to major entities such as Coca-Cola Co.
Jonathan Oppenheimer, whose family has significantly influenced the establishment of mining behemoth Anglo American Plc and the transformation of De Beers into the preeminent diamond producer globally, is now strategically positioned to influence GZI’s expansion in sub-Saharan Africa.
It is noteworthy that urban-educated adults within the region record the world’s highest consumption of sugary beverages, averaging 12.4 servings per week, as cited in Nature Communications.
GZI, a direct competitor of the unprofitable Nampak Ltd., has judiciously undertaken asset sales and debt restructuring. Affirma Capital’s initial investment in GZI dates back to 2012, with the firm boasting an impressive annual production capacity of 3 billion aluminium cans in the African market.
Moreover, Oppenheimer’s interest in Nigeria’s principal beverage can producer aligns with the country’s initiatives to reinvigorate its floundering economy. The government has embarked on measures to address issues such as double taxation and to facilitate the prompt remittance of foreign funds, aiming to counter the decline in capital inflow.
Since 2008, Affirma Capital has invested in 11 African entities and has completed successful exits from eight, delivering returns exceeding $800 million to investors.
The combined net worth of the Oppenheimer family stands at $9.4 billion, partly bolstered by the $5 billion divestment of their stake in De Beers in 2012, according to the Bloomberg Billionaires Index.
With Jonathan Oppenheimer now at the helm of Nigeria’s prominent can manufacturing company, one can anticipate noteworthy developments within the industry and the economy of the entire sub-Saharan African region.
