A Standard Chartered Private Equity (SCPE) led consortium has invested $175 million for a significant minority stake in FINE, a leading integrated tissue manufacturer across the Middle East and North Africa (Mena) region.

The majority of the proceeds will be used to fund the expansion of the company’s production capacity given the robust growth in core markets and opportunities in new markets, said a statement.

FINE is a leading brand in hygienic paper products, and facial and personal tissue brands in the Middle East along with kitchen, bathroom, industrial hygienic products and baby/adult diapers, it said.

It is majority-owned by the Nuqul Group of Jordan, where it is headquartered, and is fully integrated with a widespread manufacturing base throughout the GCC, Levant and North Africa.  

SCPE will be granted two seats on the board of the company and will provide strategic insight towards delivering on FINE’s growth strategy in core markets, expanding in new markets in Africa and an eventual IPO, said the statement.

This is SCPE’s sixth investment in the Mena region, its second investment in a Jordanian headquartered company, and takes overall Mena direct investments to $560 million, it said.

Taimoor Labib, regional head of Mena Private Equity and head of Global Private Equity Portfolio Management at SCPE, said: "We are delighted to partner with the Nuqul Group, one of the region’s leading business conglomerates. FINE’s active ownership, high quality management team, iconic brand, transparency and independent governance make it one of the leading consumer brand companies in the Mena region.  

Labib and Omar Rifai, executive director, will be joining the FINE board on behalf of SCPE.

Ahmad Abu Eideh, chief executive officer, Standard Chartered Bank Jordan, said: “We are excited that our private equity colleagues are investing in one of the leading companies in Jordan.  SCPE’s investment in FINE is testament to the bank’s focus on building deep and long-standing relationships with our clients.

“The Nuqul Group and FINE has been one of our strategic clients for the last five decades and we look forward to further supporting FINE as it enters its next phase of growth and expansion.”

SCPE is the private equity arm of Standard Chartered Bank and invests in companies in need of growth capital and buyouts.

It focuses on companies whose principal operations and management are located in Asia, Africa or the Middle East and is an active partner that provides board-level strategic advice and access to the international network of Standard Chartered Bank. - TradeArabia News Service