Able Logistics Group, a portfolio company of GrowthGate Capital, has completed a leveraged recapitalization. Bank of Sharjah led the recapitalization and also served as sole adviser and principal lender on the transaction. Proceeds were used to pay down debt as well as pay a cash dividend to shareholders. No financial terms were disclosed. Able Logistics is a freight-forwarding company that GrowthGate Capital is planning on taking public in Dubai this year.
GrowthGate Capital, the GCC specialist investment firm, today announced that its portfolio company Able Logistics Group (“Able”) has completed a leveraged recapitalization. GrowthGate Capital had acquired a strategic stake in Able, a Dubai-based logistics and transport service provider, in Q4 of 2007, and over time amassed a controlling stake therein. With this latest recapitalization, and from antecedent dividend repayments, GrowthGate Capital has realized circa 158% return on its original investment, whilst still controlling 70% of Able’s equity.
GrowthGate Capital intends to set Able on course for an IPO in 2014 in the UAE and is actively engaged in the process of selecting investment bankers for such deal. In light of the immense infrastructure developments (ports, airports, trains and roads) and in anticipation of major events, including but not limited to Expo 2020 in the UAE, an IPO for a logistics and transport company would constitute a landmark deal for the local stock market.
The recapitalization was led by Bank of Sharjah, which acted as sole adviser and principal lender on the deal. Proceeds from the recapitalization were used, along with cash on hand, to repay existing debt and pay a cash dividend to shareholders. Mr. Haythem M. Macki, a founding partner in charge of managing GrowthGate Capital’s portfolio, said: “We are very pleased with our investment in Able, which has performed exceedingly well since becoming part of our portfolio. Through this successful recapitalization, our investors received a significant cash dividend while retaining a controlling ownership of this growing company”.
Able remains conservatively leveraged and has the financial flexibility to continue investing in the business to further enhance its value chain. “As GrowthGate, we are excited to support Dr. Ghanem Al Hajiri, founder, Executive Chairman and President of Able, along with the senior management team as they work to capitalize on Able’s many exciting growth opportunities including the planned IPO”, Mr. Macki added.
About Able Logistics
Able Logistics Group is an integrated provider of freight forwarding, land transportation, and warehousing services, and a regional leader in its business segment thanks to an extensive network than spans throughout the Middle East and Asia; and a management team with over 35 years of experience. Since its inception in 2001, Able has evolved from an airfreight forwarder into a logistics service provider using multi-modal solutions to address the growing needs of governmental agencies; multinationals and conglomerates operating in Asia, Europe, Africa and the Middle East. Able’s revenues in 2013 were in excess of $150m and the company boasts a historical track record of robust profitability.
About GrowthGate Capital
GrowthGate Capital focuses on growth equity capital investments in middle market companies operating principally in the GCC and in other select markets in the MENA region. GrowthGate Capital was formed in late 2007 with $200m in permanent capital contributed by a handful of shareholders including State-owned banks, public pension funds, and single-family offices. As of December 31, 2013, GrowthGate Capital has circa $1.6bn in Assets-under-Monitoring. The firm has conducted several investments in various sector including: logistics and transport, building materials, steel fabrication, waste management, animation and themed entertainment, private jet management, biometrics, food processing and catering. The firm has completed an exit in 2013, and is contemplating two additional liquidity events in 2014, excluding this most recent structured transaction. The firm is managed by GrowthGate Partners.
For more information, please visit http://www.growthgate.com