GulfMerger helps 'close Kuwait's biggest equity deal'
Kuwait, January 13, 2009
GulfMerger said it helped close 'the largest private equity deal in Kuwait's history' with the sale of Al Masar United's controlling stake in Jassim Transport & Stevedoring Company (JTC) to Global Private Equity.
GulfMerger, a leading mergers & acquisitions (M&A) advisory firm in Kuwait, acted as sole sell-side financial adviser to Al Masar United Company.
Established in 1979, JTC is one of Kuwait’s largest integrated logistics companies offering end-to-end business solutions including cargo and container stevedoring, warehousing, heavy lifting and transportation in Kuwait.
The company holds the leading share of the commercial stevedoring business in Shuwaikh Port, Kuwait’s main commercial port.
JTC also manages the largest fuel distribution operation in the Middle East, operating close to 1,000 fuel tankers and catering to customers including Kuwait National Petroleum Company and the US Military.
In addition, the company currently operates one of the largest diversified equipment rental businesses in the Gulf region.
With a fleet of over 1,000 equipments such as cranes, forklifts, compressors, and generators it caters to a wide range of customers in Kuwait, Iraq, and Qatar.
These include Kuwait Petroleum Company, Qatar Petroleum Company, Hyundai Heavy Engineering and SK Engineering.
For 2008, the company is expected to post revenues of $120 million and operating cash flow of approximately $44 million. JTC has a strong balance sheet with no bank debt and approximately $20 million in cash.
As part of the sale, Al Masar United will continue to own a minority equity interest in JTC and play an integral part of JTC’s day-to-day management and growth.
Yann Pavie, GulfMerger’s founder and CEO, said the sale of JTC to Global Private Equity represents a landmark transaction in the region at this economic juncture.
'This highlights the increasing role that leading private equity firms are expected to assume in the region in spite of current market conditions,' he noted.
'More importantly, this deal continues to demonstrate our clear capabilities to close deals on behalf of or opposite leading global and regional companies and large private equity houses, creating strategic partnerships that add value to all sides,' he added.
The successful sale of JTC marks the sixth M&A deal for GulfMerger in 2008 following the acquisitions of Kuwait German Readymix and Gulf Readymix, the 65 per cent sale of Amadeus Kuwait, acquisition of Publisher Printing Press and sale of Al Rai Television.
In June, GulfMerger was named ‘Best M&A House in Kuwait’ by Euromoney in 2008.
According to Pavie, these deals further solidify GulfMerger’s leadership in the Kuwaiti M&A market.
'While we are pleased with our growing leadership market position, more importantly, we are pleased to deliver to our clients successful deal execution to ensure that value is maximized and risks are mitigated,' he added. -TradeArabia News Service