Global concludes majority exit from Kuwait-based Jassim Transport and Stevedoring Company
The transaction was concluded on Wednesday, 10 July 2019 and 60% ownership of JTC, collectively held by Global’s Private Equity (PE) funds and Boodai family, was transferred to Qurain Petrochemical Industries Company (QPIC) and its group companies. Under this transaction, Global Buyout Fund and Global Opportunistic Fund II sold 25.3% and 10.7% equity stake in JTC respectively. The Investment Banking team at Global was the sell-side advisors to the sellers in this exit transaction, in association with EY.
Sulaiman Mohammed Al-Rubaie, CEO of Global and Chairman of JTC commented on this exit: "We are extremely delighted to have completed the partial exit of JTC, one of the crown jewels from the existing portfolio companies of our PE funds. The PE team along with the Boodai team has successfully turned around this company over the last five years to be a leader in its fields. Following this successful partial exit, the company is preparing to come out with an Initial Public Offering (IPO) in the coming quarters and list on Boursa Kuwait. We are confident that the commitment, track record and expertise of the acquirers will provide JTC with the required support and guidance to further grow the company.”
He added, “We expect to distribute the proceeds from this transaction to clients investing in the funds in the third quarter of 2019. Over the years, Global’s private equity team has demonstrated its capabilities in managing, growing and exiting assets across diverse sectors and in challenging market conditions”.
The two PE funds had collectively acquired 60% stake in JTC in 2008 and since then the PE team has done a complete organizational restructuring, transforming the company from a family-owned business to an institution with best corporate practices. After acquisition by Global, JTC has grown as a high quality, integrated solutions provider in four business segments: Ports Services, Contract Logistics, Equipment Leasing and Power Rental. In terms of geographical expansion, today, the company has an active presence in three countries in the Middle East: Kuwait - hub for all the businesses, Qatar - Equipment Leasing and Saudi Arabia - Power Rental. Achievements resulting from the company’s transformation under Global’s PE funds include the growth of Power Rental as a dedicated business line, and the company’s expansion in the warehousing business in Kuwait.
JTC, which celebrates its 40th year of operations in 2019, has significantly expanded its capabilities in all its business segments in recent years. The company has added around 90 cranes, 100 trucks and 350 generators in the last 5 years alone. JTC’s strong cash generating ability enabled it to make new Capex investments of around KWD 30 million since 2014, all self-funded from its own operations. It has also distributed dividends of around KWD 35 million to shareholders during the same period, while maintaining a healthy and debt-free balance sheet.
“We are thankful to Global and the Boodai family for their continued support, guidance and business decisions that have positioned the company on the growth path to take it to the next level”, commented Adel Kohari, Chief Executive Officer of JTC.
“The competitive position, strong financial, zero debt status with strong cash flow generating ability in addition to the solid foundation for future growth makes JTC an ideal IPO candidate, commented Chandresh Bhatt, Portfolio Manager for this asset and a Partner with Global’s PE team.
It is worth noting that since the new management of Global’s private equity team took over in 2010, the team has successfully restructured the portfolio companies, put them on the growth path and enhanced their value. Till date, the team has concluded 47 exits, the highest among all private equity firms in the region and distributed more than USD 723 million to its clients since inception.
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