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Gulf Capital announces sale of UAE portfolio firm

DUBAI, September 19, 2017

Gulf Capital, one of the largest and most active alternative asset managers in the Middle East, has announced full exit from its portfolio company, Reach Employment Services, a leading manpower outsourcing company in the UAE, generating a return of over two times its original investment.

The sale of Gulf Capital's 80 per cent stake in Reach Employment Services, in a structured management buyout, represents a complete divestment from the company, said a statement from Gulf Capital.

The company worked closely with the Reach Employment Services management team to transform the business from a single city, single sector focused company into a highly diversified operation with over 150 clients operating in a number of industries across the public and private sectors in the UAE.

The aggressive expansion and diversification programme enabled Reach to achieve an impressive growth in the number of clients, the entrance into a number of new sectors and the doubling of the company's profitability, it stated.

During Gulf Capital's ownership period, Reach increased its net profits by 110 per cent, the statement added.

CEO Dr Karim El Solh said: "We have enjoyed working and partnering with the talented team at Reach Employment Services and embarking together on this exceptional growth journey."

"The strategy of expanding the company aggressively across new sectors and geographies has firmly positioned Reach today as the leading manpower outsourcing company in the UAE. This investment cements Gulf Capital's track record of backing local companies and transforming them into market leaders across emerging markets," remarked Dr Solh, who is also the chairman of Reach.

Reach today has a remarkable franchise and a strong management team and is well positioned to continue its impressive growth trajectory in the future, he added.

Malik Melhem, the chief executive of Reach Employment Services, said: "Gulf Capital proved to be an outstanding, high value-add partner as we embarked on our journey together and transformed Reach into the market leader it is today."

"Gulf Capital was instrumental in shaping the company's new growth strategy and in helping us to install the infrastructure and processes required to enable us to grow and scale rapidly. With our strong foundation and leading franchise, we are well positioned to continue our growth in the future," he added.

Muhannad Qubbaj, the senior managing director at Gulf Capital, said: "We were particularly pleased to have partnered with Mr. Melhem and his management team on this exciting transaction."

"The remarkable growth of Reach and the subsequent successful exit of this investment highlights Gulf Capital's strong operational involvement in its portfolio companies and its ability to generate attractive returns to its investors," he added.-TradeArabia News Service




Tags: UAE | Gulf Capital | Reach Employment Services |

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