The Oppenheimers, South Africa’s second wealthiest family, have successfully acquired controlling interests in GZ Industries Ltd., a pxrominent can manufacturer in Nigeria. Jonathan Oppenheimer, the son of Nicky Oppenheimer, strategically secured full control of GZ Industries, a major player in Nigeria’s beverage can manufacturing sector. This move signifies a strategic bet on the potential revitalization of Africa’s largest economy.
Oppenheimer Partners Ltd. completed the acquisition of the remaining shares in GZ Industries from Affirma Capital (formerly Standard Chartered Private Equity). While the financial details of the deal are undisclosed, Affirma Capital previously held a significant 37.5% stake in GZ Industries, a key supplier of cans to major entities like Coca-Cola Co.
GZ Industries, which commenced operations in Nigeria in 2019 under the leadership of Executive Director and Group CEO Ayodeji Adelakun, is set to witness a trajectory shift under Jonathan Oppenheimer’s guidance. The move strategically aligns with tapping into the lucrative consumer base in sub-Saharan Africa, where urban, educated adults exhibit the world’s highest consumption of sugary drinks.
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Jonathan Oppenheimer and Oppenheimer Partners entered the GZ Industries venture in 2018, coinciding with the establishment of a GZI factory in South Africa. Currently, GZI holds a 20% market share in South Africa, competing with financially challenged Nampak Ltd., undergoing asset sales and debt restructuring.
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Affirma Capital’s initial investment in GZ Industries dates back to 2012, and the company boasts significant production capacity, manufacturing 3 billion aluminum cans annually in Africa, with 1.8 billion of those produced in Nigeria.
This strategic acquisition aligns with Nigerian President Bola Tinubu’s ambitious 2024 spending plans of N27.5 trillion ($34 billion), aimed at fostering job-rich economic growth and a favorable investment environment. The Oppenheimer family’s financial standing, with a combined net worth of $9.4 billion, stems primarily from the 2012 sale of their stake in De Beers for approximately $5 billion, according to the Bloomberg Billionaires Index.
The Oppenheimers’ latest move reflects a commitment to capitalize on emerging opportunities within Africa’s dynamic economic landscape, emphasizing their dedication to shaping industries that align with the continent’s growth potential.
