GrowthGate exits key Saudi investment
Riyadh, February 14, 2013
GrowthGate, a growth investment company operating in the region, has exited its investment in Roots Steel International (RSI), a manufacturer of pre-engineered metal building systems based in Saudi Arabia.
This is the first exit for GrowthGate from its Saudi investments, said the Bahrain-based investment firm in a statement.
As per the deal, GrowthGate sold its minority stake in RSI to a consortium of majority shareholders thus netting solid returns on the investment.
GrowthGate, which was established in late 2007, is focused on the middle-market segment principally in the GCC, and other select markets of the Middle East.
The company's investment strategy emphasizes injecting growth-equity capital into service-orientated, assets-light, profitable companies with the aim of scaling-up their operations and footprint region-wide.
Acquiring non-controlling stakes, setting expansion strategies and staunchly backing bold and visionary founder-managers has been GrowthGate’s modus operandi since inception, said a senior official.
"GrowthGate’s partnership with RSI’s core shareholders and management has been the most valuable for propelling the company from a local player into a regional challenger," remarked Karim A Souaid, the managing partner of GrowthGate.
RSI, he said, has established a leading position in steel fabrication in record time, using hitech designs, high-end execution and superior delivery of intricate structures for large-scale projects across the region.
"RSI has a dynamic management team, an excellent market position, and attractive growth prospects. We wish the RSI team much success as they start the next chapter in the company’s history,” Souaid stated.
In 2012, RSI had registered revenues of SR153.5 million and was expected to surpass its past performance this year with a backlog of projects in excess of SR1.74 billion over the coming three years.
RSI presently has plants and operations in Saudi, the UAE, Syria and Egypt.
"We are delighted to have partnered with GrowthGate which has supported RSI through a key phase of growth during which our revenues have almost trebled," remarked Mazen Kabbara, the managing director of RSI.
GrowthGate has supported us in our expansion plans as we have developed the business across the Mena region."
"Their understanding of our business both from an operational and strategic perspective has been invaluable to the company and fundamental to the growth and success we have enjoyed. We are proud of our past achievements and equally excited about future growth opportunities," he added.-TradeArabia News Service