Africa (Commonwealth Union) _ Jonathan Oppenheimer, scion of the South African billionaire Oppenheimer family, has secured a controlling interest in GZ Industries, Nigeria’s prominent beverage can manufacturer. The acquisition involved purchasing the remaining shares from Affirma Capital, a private equity firm that previously held a significant 37.5% stake in GZ Industries. Although the financial details of the deal remain undisclosed, this move positions Oppenheimer to lead the expansion of GZ Industries within sub-Saharan Africa, capitalizing on a region known for the world’s highest consumption of sugary drinks among urban, educated adults.
The acquisition is a strategic step to tap into the lucrative consumer base of sub-Saharan Africa, where GZ Industries currently holds a substantial market share. The company, a key supplier to major entities like Coca-Cola, began operations in Nigeria in 2019. With the Oppenheimer family’s involvement, the focus is expected to shift towards leveraging the region’s potential for revitalizing Africa’s largest economy.
Oppenheimer Partners initially entered the GZ Industries venture in 2018, coinciding with the establishment of a GZI factory in South Africa. Presently, GZ Industries holds a 20% market share in South Africa, positioning itself in competition with Nampak Ltd., currently undergoing asset sales and debt restructuring. Affirma Capital had initially invested in GZ Industries in 2012, and the recent acquisition allows Jonathan Oppenheimer to guide the company’s trajectory in a market with high demand for aluminum cans.
GZ Industries boasts significant production capacity, with an annual output of 3 billion aluminum cans in Africa. Out of this production figure, 1,800,000,000 cans are manufactured in Nigeria. The acquisition comes at a time when Nigeria’s economy is undergoing reforms, and Jonathan Oppenheimer’s bet on GZ Industries aligns with a vision focused on job-rich economic growth, macro-economic stability, and enhanced human capital development, as outlined by Nigeria’s president, Bola Ahmed Tinubu, in the 2024 budget proposal. The move not only signifies a strategic investment in a key industry but also aligns with the broader economic objectives of the region.
