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Growthgate Capital... big investment appreciation

Growthgate sells majority stake in Able Logistics

MANAMA, December 30, 2014

Growthgate Capital, a Gulf-based investment firm, has exited from its investment in Dubai-headquartered Able Logistics Group by selling its 70 per cent equity stake in the company to Kerry Freight Services (South Asia), a wholly owned subsidiary of Hong Kong-based Kerry Logistics Network, for $32 million.

Taking into account this transaction and prior dividends received, Growthgate Capital has realised returns up to three times on its investment in Able, a statement said.

The preparations for Able's IPO which were announced in the first quarter of 2014, were set aside indefinitely in favour of Kerry's strategic buyout offer, it added.

Growthgate first invested in Able in 2007, when operations were limited to the UAE and few Asian destinations. Today the company operates from multiple bases in Dubai, Sharjah, Oman, Saudi Arabia, Afghanistan, and Hong Kong, with over 500 corporate customers including multinationals in diversified sectors such as electronics, food, and fast moving consumer goods. Able's management expects to achieve $135 million in total revenues in 2014, according to the statement.

"This is a great development for Able, as Kerry is the best strategic partner to take the company forward and give the senior management team the opportunity to propel the business on a wider scale as part of a global platform," said Karim A Souaid, general manager of Growthgate Capital.

"Since its establishment in 2001, Able has delivered consistent and outstanding growth quarter after quarter. Starting from scratch, the company has gained a significant market share of the corporate logistics and freight forwarding market in little over ten years, in a highly competitive and concentrated context, and a difficult economic climate.

“This tremendous success is the result of the combination of an ambitious project with a faultless execution by a great management team. We have consistently supported and funded Able, and are proud of its achievements," added Souaid.

Vijay Vikram, CEO and co-founder of Able said, "We have very much appreciated the steadfast support from Growthgate throughout the past years. As the only institutional investor in the company, Growthgate took the initial risk, and continued to support us ever since, committing valuable time, capital and efforts to build-up the platform in different markets and varying economic cycles. Growthgate has simply been an ideal growth partner."

White & Case acted as international counsel for Growthgate Capital on the transaction whereby HLP LLC acted as local counsel. PwC further advised Growthgate on specific finance and accounting aspects of the transaction. – TradeArabia News Service

Tags: logistics | Hong Kong | GrowthGate | Able | Kerry |

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