Officials from both firms at the signing ceremony
Mumtalakat buys stake in Kuwait gas manufacturer
MANAMA, March 9, 2016
Bahrain Mumtalakat Holding Company, the kingdom's sovereign wealth fund, has acquired a minority equity stake in Gulf Cryo, a leading regional manufacturer, distributor and service provider of industrial gases based in Kuwait.
Mumtalakat will join Gulf Cryo’s shareholder group, which includes Amer Huneidi, other members of the Huneidi family and Investcorp, said a statement.
DeNovo Corporate Advisors acted as the financial advisor in this transaction to the majority shareholders in the company, it said.
Founded in 1953 as the Kuwait Oxygen and Acetylene Company, Gulf Cryo produces and supplies industrial, medical and specialty gases to a wide range of industries in the Middle East and North Africa (Mena) region.
Gulf Cryo currently oversees a network of more than thirty production and distribution sites operating in twelve countries, including the GCC countries, Jordan, Syria, Egypt, Iraq, Turkey and Austria.
Its capabilities include a considerable pipeline distribution network, a large merchant air separation production capacity in the region as well as an extensive network of facilities manufacturing and distributing oxygen, nitrogen, acetylene, carbon dioxide, dry ice, hydrogen, nitrous oxide, food-grade, specialty and medical gases.
Mahmood Hashim Al-Kooheji, chief executive officer, Mumtalakat, said: “We are delighted to have concluded this transaction, which is aligned with our strategy to invest in leading international companies with strong growth potential looking for an active, long-term investor.
“We look forward to working closely with Gulf Cryo’s skilled management team to support its future growth and expansion initiatives. By leveraging Mumtalakat’s regional network and industrial sector expertise, we aim to support the company’s market penetration as well as its plans to establish a presence in Bahrain.
“This acquisition marks our fourth investment in the industrial sector in recent months and is a reflection of our continued efforts to grow and diversify our business portfolio. These investments will help further diversify the Kingdom’s industrial base and drive local economic development.”
“We are delighted to welcome Mumtalakat, a highly respected investment company, to Gulf Cryo’s shareholding structure. With its considerable funding expertise and influential connections in Bahrain and the wider GCC, we are confident that Mumtalakat will help support Gulf Cryo’s investment plans in the coming years,” said Huneidi, who is the chairman of Gulf Cryo.
“We have been through a period of significant growth, concentrating on growing our portfolio of business services across wider territories. Our aim is to achieve sustainable investment returns for our stakeholders and we look forward to working with the Mumtalakat team to further strengthen our market position,” he added. - TradeArabia News Service
