The Abraaj Group has backed Plastic Electromechanic Company (PEC), which specializes in plastic injection, the assembly of electrical equipment and harnesses, and medical products. With Abraaj’s operational and financial support, PEC will look to launch new products, expand further into Europe and the Middle East, and look at complementary acquisitions.
The Abraaj Group, a leading investor operating in growth markets, has backed Plastic Electromechanic Company (PEC), which specializes in plastic injection, the assembly of electrical equipment and harnesses, and medical products.
Established in 2004 as a plastic injection company, PEC has grown to become an industrial group which has expanded its client base, products, industry and country exposure. It now serves top tier clients in sectors including the automotive, electrical and healthcare industries in Europe and the US. It is implanted in the Hammam-Zriba I.Z. on a field of 8,500 square metres.
PEC was recently presented with an award by the Tunisian Prime Minister Ali Laarayedh for Best Offshore Company in Tunisia at the Tunisia Investment Forum 2013.
With Abraaj’s operational and financial support through its controlled investment vehicles, PEC will now look to launch new products, expand further into Europe and the Middle East, and look at complementary acquisitions. PEC recently announced the launch of its Moroccan plant which will commence operations by the end of 2013 and will mark the third international site for PEC after China and France. With this Moroccan presence, PEC will be able to present a stronger value proposition to its multinational clients by providing a combination of cost-efficient injection solutions and closer geographic proximity to the assembly lines of its clients.
Ahmed Badreldin, Partner at The Abraaj Group, said: “Our investment in PEC fits our strategy and builds on our four other Tunisian investments in the pharmaceuticals and consumer goods sectors. Given its high standard of delivery and relatively short transportation time to Europe and the US, along with other cost advantages, PEC is well positioned for further organic growth and potential acquisitions.”
Adel Goucha, Director at The Abraaj Group, added: “This investment provides a strong opportunity for us to back a business in a sector which has shown robust historical growth and profitability, with solid future prospects for expansion. The construction of the Moroccan plant is a major milestone in the growth trajectory of PEC and we are excited about supporting the company as it looks to construct this new plant, develop new products and expand its international footprint.”
Imed Charfeddine, CEO of PEC, said: “Our relationship with Abraaj has already started bearing fruit and with their backing, we have already made an acquisition in France and launched a new plant in Morocco. The initial investment and support they have so far provided has already benefited us both strategically and financially, and we are confident that this will continue as we launch our new facilities and products, expand further into Europe and the Middle East, and construct new plants.”
The Abraaj Group is a leading private equity investor operating in the developing and growth markets of Asia, Africa, Latin America and the Middle East.
The Abraaj Group currently manages US$ 7.5 billion across 25 sector and country-specific Funds encompassing private equity (majority and significant minority investments with ticket sizes of between US$ 10 million to US$ 100 million) and real estate (primarily yield-generating) investments.
Funds managed by the Group have holdings in over 150 partner companies that create sustainable value in sectors including manufacturing, education, retail, aviation, oil and gas, financial payments infrastructure, healthcare and agribusiness. The Abraaj Group now has five investments in Tunisia: two in branded generics (pharmaceuticals), two in consumer staples (baked goods and poultry) and one in auto parts manufacturing. Examples of Abraaj partner companies in the wider MENA region include one of the largest emerging markets medical diagnostics groups, Integrated Diagnostics Holdings, a manufacturer of generic drugs, Opalia, and leading supermarket chain, Spinneys. The Abraaj Group has 10 offices in the MENA region – Tunisia, Algeria, Dubai, Egypt, Jordan, Lebanon, Morocco, Pakistan, Palestine and Saudi Arabia.
The Abraaj Group is committed to the highest environmental, stakeholder engagement and corporate governance standards and is a signatory of the UN-backed Principles for Responsible Investment and the United Nations Global Compact.
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