German fiberboard maker enters Egypt through JV with Egypt Kuwait Holding
German fiberboard producer Homann Holzwerkstoffe is acquiring a 27% stake in Egypt Kuwait Holding (EKH)’s subsidiary Global MDF Industries, EKH announced in a statement (pdf) yesterday. The transaction is part of an agreement launching a new JV between Homann Holzwerkstoffe and EKH. A company representative we reached out to yesterday declined to disclose the value of the transaction.
How it will work: EKH will sell a 16.2% stake in Global MDF to the German firm when the agreement closes. The remaining 10.8% will change hands when production begins at Global MDF subsidiary Nile Wood’s factory in Sadat City (slated for 4Q 2022). The factory will produce up to 200k cubic meters of MDF, which will be sold to the local and overseas markets, EKH CEO Sherif El Zayat said in the statement.
Tree to table: The transaction gives Homann Holzwerkstoffe a stake in Global MDF’s two other fully-owned subsidiaries, which will supply the Nile Wood factory with raw materials. “The direct access to raw materials will be a key growth driver,” said Homann Holzwerkstaffe Managing Partner Fritz Homann.