ADIC MENA Partners, LP, a private equity fund managed by Abu Dhabi Investment Company (ADIC), announced the acquisition in a leveraged buy-out transaction of a majority stake in Al Zarooni Family’s Unitra METS Group, a specialty beverage distributor, headquartered in Dubai – UAE, with 2008 revenues expected to be in excess of AED 600 million.
The acquisition of the Unitra METS Group clearly highlights ADIC Private Equity’s strategy of buying majority stakes from family and other business owners, using a sensible amount of non-recourse, cash flow based financial leverage. This strategy capitalizes on a new market trend of family groups rationalizing their portfolios and tying up with private equity groups.
Najib Al Zarooni, Chairman of Unitra METS Group said, “We are very proud of our success in building Unitra METS into one of the UAE’s leading specialty beverage distributors and look forward to expanding the business regionally with the support of our new partners at the ADIC Private Equity Fund.”
Commenting on the acquisition, Robert Wages, Executive Director of ADIC Private Equity, said, “ADIC is very pleased to be investing in Unitra METS Group. We are confident this transaction will demonstrate how successfully a private equity firm can partner with a family-owned business to build market-leading regional businesses.”
Alwaleed Abdelrahman, the Senior Vice President of ADIC Private Equity who led the transaction from the ADIC side added, “Due to its excellent management, operations and infrastructure, the Unitra METS Group is very well-positioned to capitalize on the strong growth in the beverage market in the UAE and beyond.”
The ADIC Private Equity Group launched the ADIC MENA Partners LP fund, a $500 million buy-out fund with a commitment from ADIC of $100 million, which will be closed early next year. The fund’s proceeds will be invested in buying-out regional companies for majority stakes. The ideal transaction size for one company would be between $75-200 million and the countries focused on include MENA, Pakistan, and Turkey. The fund is being marketed to Institutional Investors and High Net-Worth Individuals (HNWIs), as the minimum subscription is $5 million.
