Growthgate Capital Successfully Sells Majority Stake in Able Logistics (UAE) to Kerry Logistics Network (HK)

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MANAMA, Bahrain, Dec. 30 /PRN=KYODO JBN/ --

Growthgate Capital, the Gulf-based investment firm announced today that it has

exited from its investment in Able Logistics Group (Able) by selling its 70

percent equity stake therein to Kerry Freight Services (South Asia) Pte. Ltd.,

a wholly owned subsidiary of Kerry Logistics Network, for $32 million (subject

to certain adjustments). Taking into account this transaction and prior

dividends received, Growthgate Capital has realized a 3x returns on its

investment in Able. The preparations for Able's IPO which were announced in Q1

2014, were set aside indefinitely in favor of Kerry's strategic buyout offer.

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Able is a leading freight forwarder and logistics provider headquartered in

Dubai, with additional operating bases in the Middle East and other key hubs in

the Near and Far East. The transaction involved the acquisition of 70 percent

of Able's capital stock by Kerry Freight Services (South Asia). Kerry Logistics

Network, the owner of Kerry Freight Services, is a publicly listed company in

Hong Kong (stock code 00636) with a total market cap of HK$20.5 billion as at

December 29, 2014. Kerry is one of Asia's major logistics providers with a

global network that stretches across six continents, including an extensive

distribution network and hub operations in Greater China and the ASEAN region.

Growthgate first invested in Able in 2007, when operations were limited to the

UAE and few Asian destinations. Today the company operates from multiple bases

in Dubai, Sharjah, Oman, Saudi Arabia, Afghanistan, and Hong Kong, with over

500 corporate customers including multinationals in diversified sectors such as

electronics, food, and fast moving consumer goods. Able's management expects to

achieve $135 million in total revenues in 2014.

"We have always believed in Able's business model, and the outstanding team led

by Dr. Ghanem Al Hajri, Executive Chairman and Vijay Vikram, CEO. Since 2007,

we have been continuously impressed by their commitment to delivery and the

phenomenal results achieved. This is a great development for Able, as Kerry is

the best strategic partner to take the company forward and give the senior

management team the opportunity to propel the business on a wider scale as part

of a global platform," commented Karim A. Souaid, General Manager of Growthgate

Capital.

"Since its establishment in 2001, Able has delivered consistent and outstanding

growth quarter after quarter. Starting from scratch, the company has gained a

significant market share of the corporate logistics and freight forwarding

market in little over ten years, in a highly competitive and concentrated

context, and a difficult economic climate. This tremendous success is the

result of the combination of an ambitious project with a faultless execution by

a great management team. We have consistently supported and funded Able, and

are proud of its achievements," added Souaid.

Vijay Vikram, CEO and co-founder of Able said, "We have very much appreciated

the steadfast support from Growthgate throughout the past years. As the only

institutional investor in the company, Growthgate took the initial risk, and

continued to support us ever since, committing valuable time, capital and

efforts to build-up the platform in different markets and varying economic

cycles. Growthgate has simply been an ideal growth partner."

White & Case acted as international counsel for Growthgate Capital on the

transaction whereby HLP LLC acted as local counsel. PwC further advised

Growthgate on specific finance and accounting aspects of the transaction.

About Able Logistics

Able Logistics Group is an integrated provider of freight forwarding, land

transportation, and warehousing services, and a regional leader in its business

segment thanks to an extensive network than spans throughout the Middle East

and Asia; and a management team with over 35 years of experience. Since its

inception in 2001, Able has evolved from an airfreight forwarder into a

logistics service provider using multi-modal solutions to address the growing

needs of governmental agencies; airlines, multinationals and conglomerates

operating in Asia, Europe, Africa and the Middle East.

About Growthgate Capital

Growthgate Capital is a Gulf-based private investment firm that follows a

"buy-and-build" strategy. The firm specializes in buying into well-managed

companies with scalable business models, and leveraging those capabilities by

acquiring/adding more entities to build up and grow said companies. Targets are

principally selected from the GCC and other key markets of the MENA region.

Growthgate Capital was formed in 2007 with $200m in permanent capital

subscribed by a select group of shareholders including State-owned banks,

public pension funds, and single-family offices from the Middle East.

The firm has completed to date four liquidity events including the sale of its

stake in Roots Steel International (Saudi Arabia) in 2013, a partial exit from

Able via a dividend recap in Q1 2014, the reverse takeover by Gama Aviation

with Hangar 8 Plc and its subsequent listing on the London Stock Exchange; and

the current strategic sale of Able to Kerry Logistics Networks. Growthgate

Capital had, as of beginning of 2013, circa $1.65 billion in

Assets-under-Monitoring and is managed by Growthgate Partners.

Contact: Sabina Lindstedt +971(0)4-3302220

SOURCE: Growthgate Capital