This was announced during a Press conference following Investcop’s shareholders meeting held at the Ritz-Carlton Hotel.
Mohammed Al Shroogi, Investcorp’s President, Gulf Business, without mentioning the exact financial impact of the acquisition said that Investcorp would be looking medium term investment commitment of $150million to $450million.
He said that there would be some exists in 2014 likely out of its 10 existing opportunities in the Gulf region. “We will continue to seek opportunities across the region as part of the Investcorp’s commitment to the region,” he added.
Investcorp said that its Gulf Opportunity Fund has acquired a 30% stake in Theeb Rent a Car Co, one of Saudi Arabia’s leading car rental companies. As part of the agreement, the Fund will be represented on Theeb’s Board and will play an active role in key decisions which will include both governance as well as future exit strategies.
Theeb was established in 1991 by Homod Al Theeb and Mohammed Al Theeb and today employs 900 people and operates a fleet in excess of 10,000 cars. It is the second largest car rental company in Saudi Arabia and operates in various locations across the Kingdom including at all major airports. Over the last three years, Theeb has delivered more than 17% growth in both revenues and net income.
“Theeb is a well-respected family business and a leading player in the Kingdom’s vibrant car rental industry. It is well positioned to grow driven by Saudi Arabia’s accelerating economy. We will work closely with the Theeb management team to help grow the business. This is the Fund’s 10th investment within the region and its fourth in Saudi Arabia,” Mohammed Al Shroogi, Investcorp’s President, Gulf Business, said.
“We are enthusiastic about this partnership and about the Company’s growth prospects given its leading position in a sector estimated at circa $1 billion and which has witnessed double digit growth over the last five years,” Walid Majdalani, Managing Director, Investcorp Corporate Investments-MENA, said.
“Today, Theeb is one of the largest car rental businesses in the Kingdom underpinned by a strong business model and a growing market. As a rapidly growing family business, processes and proper governance are key requirements and we believe Investcorp will be able to assist us on these matters in addition to providing expertise within our sector. This is central to the next phase of our growth strategy,” Homod Al Theeb, Co-Founder and Chairman of Theeb, said.
“We hope to achieve double digit growth over the next five years. With Investcorp’s reputation and active support, we believe we are well positioned to consolidate our leading market position and acquire further market share,” Mohammed Al Theeb, Co-Founder and CEO of Theeb, said.
Investcorp’s circa US$ 1 billion Gulf Opportunity Fund invests in companies in the GCC and Turkey as well as the wider MENA region. It’s most recent investments in Saudi Arabia include Leejam Sports Company, the leading health and fitness club operator trading under the “Fitness Time” brand and Al Yusr Industrial Contracting Company WLL (“AYTB”), a leading provider of technical industrial support services mainly to the petrochemical, oil & gas sectors. Other investments include L’azurde, Hydrasun, Automak, Orka, Gulf Cryo and Turkish Tiryaki Agro. Last year, the Gulf Opportunity Fund successfully exited from its first investment in UAE-based Redington Gulf.