Global is acquiring a 60% share in Jassim Transport & Stevedoring Co (JTC) from its owner, the Kuwait construction and logistics group Boodai Corp.
Global, which said the deal was the largest ever private equity transaction in Kuwait, said JTC represented a "compelling platform to expose the Fund to the logistics and equipment rental markets in the region and to further consolidate and regionalise the industry. We also see the potential to help grow JTC in new markets by leveraging on our relationships and track record in managing and supporting private companies within the region".
JTC was established in 1979 and is one of Kuwait's largest logistics companies, providing cargo and container stevedoring, warehousing, heavy lifting, transportation and equipment rental and leasing. It claims to have a leading share of the commercial stevedoring business in Shuwaikh Port in Kuwait and manages the largest fuel distribution operation in the Middle East, operating close to 1000 fuel tankers.
Its equipment rental division has a fleet of over 2000 units operating in Kuwait, Iraq and Qatar, and including cranes, forklifts, compressors, generators and earthmoving equipment. Major customers include the Kuwait Petroleum Company, Qatar Petroleum Company, Hyundai Heavy Engineering and SK Engineering.
Mr Marwan Boodai, chief executive officer of Boodai Corp, which retains a 40% stake in JTC, said; "JTC has grown over time to become a highly-respected provider of logistics and equipment rental services to world-class customers whether local, regional or global. We continue to grow and see significant growth opportunities both organically and through regional acquisitions to develop the business."
Mr Boodai said Boodai Corp had invested US$35 million in new equipment for JTC in 2008 and that "we are currently looking at potential acquisition targets in excess of $100 million primarily in equipment rental. JTC has a solid balance sheet with strong cashflow, and we see the current market conditions as a unique window of opportunities to capture further market share".