Carlyle Invests in Al-Nabil Food

The Carlyle Group has acquired a minority stake in Al-Nabil Food Industries Co. Ltd. The founding Rassam family will continue to hold a majority stake. Financial terms of the deal, which closed May 13, were not announced. Nabil produces more than 200 frozen and chilled food products including beef and chicken burgers.

PRESS RELEASE

Amman, Jordan – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has established a partnership through which it will hold a significant minority equity stake in Al-Nabil Food Industries Co. Ltd. (Nabil). The founding Rassam family will continue to hold a majority stake. The transaction closed on May 13, 2013. Additional financial details were not released.

Equity for this investment will come from Carlyle MENA Partners, L.P., a $500 million growth capital and buyout fund focused on the Middle East, North Africa and Turkey. This transaction is part of Carlyle MENA’s ongoing strategy of investing in fast-growing consumer-centric industries in partnership with family groups.

The Rassam family, who founded Nabil Foods in 1945, will continue to hold a majority stake in the local company, which has grown over the years to become a premier producer of a broad range of frozen and chilled food products. Through the company’s agreement with Carlyle MENA, Nabil Foods will retain its existing management and workforce, while benefitting from Carlyle MENA’s experience in transforming family-owned businesses into corporations.

Nabil Founder and CEO Nabil Rassam said, “We at Nabil are very pleased to welcome Carlyle MENA on-board as a partner in our business. Over the years, thanks to the dedication and hard work of our management and employees, we have grown into one of the region’s most recognized and trusted names in the food industry. By joining forces with Carlyle MENA, we hope to further expand Nabil’s presence in the Middle East and Africa in a focused and strategic manner. We are confident that, through this partnership, we will be able to provide the high quality selection of Nabil products to a broader range of customers.”

Firas Nasir, Managing Director and Co-head of Carlyle MENA, said: “Nabil is a household name in Jordan. Its comprehensive offering of high-quality products represents an excellent platform for regional growth.”

Mr. Nasir further added, “This first investment in Jordan is in line with our commitment to the MENA region, its industries and economy. We remain dedicated to our strategy of becoming value-adding partners in family-owned businesses.”

Fuelled by a young and growing population as well as strong GDP and income growth, the Gulf States’ food imports are expected to grow at a compound annual rate of 8 percent between 2010 and 2020, and Middle East and Africa QSR food consumption is expected to grow 11.5 percent during that time, providing encouraging secular trends to support Nabil’s growth platform.

Previous investments made by Carlyle MENA include:

Alamar Foods, the operator of Domino’s Pizza and Wendy’s restaurants throughout MENA and producer of food products for the casual dining restaurant industry
General Lighting Company, one of the largest lighting fixtures manufacturers and suppliers in the Middle East and Africa, based in Saudi Arabia
Medical Park Sağlık Hizmetleri A. Ş., one of Turkey’s largest healthcare services companies with 18 hospitals
Penti, one of the largest manufacturers of hosiery and retailer of women’s hosiery, lingerie and swimwear in Turkey
Bahcesehir Koleji, one of the largest private education providers in Turkey, with 17 campuses

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About Al Nabil Company for Food Products
Founded in 1945, Nabil produces over 200 frozen and chilled food products including beef and chicken burgers, chicken strips and nuggets, cold cuts, ethnic foods, pre-cooked meals, and sweets. Nabil sells its products to retail, catering and quick service restaurant customers in over 20 countries throughout the Middle East, Africa and Asia. In 2009, Nabil Foods embarked on significant expansion program that has more than tripled its production capacity.

About Carlyle MENA Partners
Carlyle’s MENA team was established in 2007 to invest primarily in healthy, growing companies. Carlyle’s MENA team targets investments in the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), the Levant (Lebanon and Jordan), North Africa (Algeria, Egypt, Libya, Morocco and Tunisia) and Turkey. The MENA team applies Carlyle’s global experience in various sectors, including consumer and retail, manufacturing, healthcare, energy, financial services, telecommunication and transportation to its investments in the region, while nurturing local talent and expertise.

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management in 114 funds and 76 fund of fund vehicles as of March 31, 2013. Carlyle’s purpose is to invest wisely and create value. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,400 people in 34 offices across six continents. The Group is a responsible member of the global community. Carlyle contributes to the local communities that it operates in by way of nurturing top local talent, advancing key industries and contributing to the overall economic environment.