GulfMerger Advises on Largest Private Equity Deal in Kuwait and Solidifies Leadership in Kuwaiti M&A Market
GulfMerger, the leading Mergers & Acquisitions (M&A) advisory firm in Kuwait, announced today the sale of a controlling interest in Jassim Transport & Stevedoring Company WLL (JTC) by Al Masar United WLL to Global Private Equity, in a deal representing the largest private equity transaction to-date in Kuwait’s history. GulfMerger 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 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 to customers in Kuwait, Iraq, and Qatar covering Kuwait Petroleum Company, Qatar Petroleum Company, Hyundai Heavy Engineering, and SK Engineering. For 2008, the company is expected to post revenues of approximately $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. Global Investment House, through its $615 million Global, through its Private Equity Group, acquired a controlling equity interest in JTC. The entry of Global, Private Equity Group into JTC is part of a strategy by Al Masar United aimed at expanding the company across the region.
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 and highlights the increasing role that leading private equity firms are expected to assume in the region in spite of current market conditions. 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”.
The successful sale of JTC marks the 6th M&A deal for GulfMerger in 2008 following the 100% acquisitions of Kuwait German Readymix and Gulf Readymix, the 65% sale of Amadeus Kuwait, the 100% acquisition of Publisher Printing Press, the 100% sale of Al Rai Television and the sale of JTC. In June, GulfMerger was named ‘Best M&A House in Kuwait’ by Euromoney in 2008. 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” added Pavie.
