Arcapita sells US-based logistics firm
Manama, August 19, 2013
Bahrain-based Arcapita Bank has announced that it has sold 3PD Holding, a leading last-mile logistics company in the US and Canada, for $365 million.
3PD was acquired by XPO Logistics, one of the fastest growing transportation logistics companies serving North America, said a statement.
Arcapita booked a positive return on the investment it made in 2006, the Bahrani firm said in the statement without elaborating on how large the gain was.
Arcapita acquired a majority stake in 3PD in 2006 as a growth asset that offered significant opportunity due to the fragmented and growing demand for last-mile services in North America.
Following the acquisition, Arcapita provided investment capital to 3PD, and its portfolio managers worked closely with the founders and management of 3PD to develop and deliver a strategy that propelled the business to a market leadership position despite a weak economy, said the statement.
Atif A Abdulmalik, Arcapita’s chief executive officer, added: “Despite the challenges of the global recession faced early in the holding period, Arcapita’s private equity team worked effectively and creatively with 3PD management and its board of directors to enhance the performance and realise the potential of the company to the benefit of investors. This excellent outcome demonstrates Arcapita’s continued ability to deliver profitable exits, even under its current circumstances.”
Arcapita became the first Gulf entity to file for Chapter 11 bankruptcy protection in the US in March 2012 after the firm, which had about $7.4 billion in assets under management, was hit by the global financial crisis.
A US court agreed to its reorganisation plan, which included the first Islamic bankruptcy loan, in June. –TradeArabia News Service and Reuters
More Finance & Capital Market Stories
- Egypt's forex reserves dip to $17.8bn in Nov
- Experts put spotlight on Mena tax issues
- BMI, Muharraq SC launch co-branded credit card
- NBAD partners with top business school
- Dubai non-oil trade surges 10pc to $272bn
- Iran president targets stagflation in first budget
- DFM accredits 2 firms for margin trading
- Kuwait inflation plunges to nine-year low
- DFM trading hit by technical fault
- GCC firms seek Egypt investment guarantee