Qatar First Investment Bank successfully exits Emirates National Factory of Plastic Industries

QFIB's 71.3% stake, a majority share in ENPI, was sold to SPPC, a publically traded Saudi firm specialized in providing printing packaging solutions. ENPI Group is the leading producer of flexible and rigid plastic packaging solutions having strong manufacturing base including 8 factories in Sharjah, Abu Dhabi and Riyadh.

The acquisition was announced at a closing ceremony held at Saudi Research & Marketing Group's headquarters in Riyadh. The ceremony was attended by HRH Prince Fasial bin Salaman bin Abdulaziz and a number of high ranking officials from KSA, Qatar and UAE.

QFIB acquired a 71.3% stake in ENPI Group in July 2009 and since then has played an instrumental role in cementing ENPI's position as a leading player in the plastic packaging solutions industry by streamlining the business, institutionalizing operations and expanding ENPI's manufacturing base to include Abu Dhabi and Saudi Arabia.

QFIB chairman, Abdulla Bin Fahad Al Marri, commented, "QFIB' 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. We are pleased with the successful exit of ENPI which has generated for the Bank an IRR of 31%."

Emad Mansour, CEO of QFIB, commented, "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."

Nizar Rajoub, Founder and CEO of ENPI, commented, "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 AlAzwari, Board Member and CEO of SPPC, commented, "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."

Jadwa Investment acted as the exclusive financial advisor to SPPC. Sajid Riaz, Managing Director of Investment Banking, commented, "This is a landmark transaction which will cement SPPC's position as a major regional player in the packaging sector. The innovative acquisition structure will ensure that the transaction is immediately accretive to the shareholders of SPPC."

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 having strong expertise in designing, manufacturing and customization of all types of cards. FutureCard has a client base of more than 500 customers in over 80 countries.