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Established in 1979, JTC is one of Kuwait's oldest and most prominent businesses and is one of Kuwait's largest integrated logistics companies offering end-to-end business solutions including cargo and container stevedoring, warehousing, heavy lifting, transportation and equipment leasing.
The Company holds the leading share of the commercial stevedoring business in Shuwaikh Port, Kuwait's main commercial port. JTC also manages the largest fuel distribution operation in the Middle East, operating close to 1,000 fuel tankers to customers including Kuwait National Petroleum Company and the US Military. In addition, the company currently operates one of the largest diversified equipment rental businesses in the Gulf region, with a fleet in excess of 1,000 equipments in Kuwait, Iraq, and Qatar including cranes, forklifts, compressors, and generators to customers covering Kuwait Petroleum Company, Qatar Petroleum Company, Hyundai Heavy Engineering, and SK Engineering.
Commenting on the transaction, Mr. Omar El Quqa, Executive Vice President at Global said "this is another landmark transaction to be executed by our private equity arm, which shows Global's strong confidence in the fundamentals and the outlook of the Kuwaiti and the whole GCC economy.
He continued, this represents one of the largest private equity transactions in the region and the largest in Kuwait".
Mr. Shailesh Dash, Senior Vice President and Head of the Private Equity Funds Group at Global commented "We are very proud to announce the completion of this transaction and our affiliation with such prominent partners as the Boodai family. We see JTC as a compelling platform to expose the fund to the logistics and equipment rental markets in the region and to further consolidate and regionalize the industry. We also see the potentiality to help growing JTC in new markets by leveraging on our relationships and track record in managing and supporting private companies within the region", mentioned Dash
Mr. Dash further added: "we continue to believe that the logistics sector in the region is set to witness growth as well as higher margins, particularly as weak players gradually exit the market or integrate into larger and stronger companies. As one of the oldest and well established companies in its league coupled with a very healthy balance sheet, Global Private Equity Funds Group is thrilled to be now part of one of Kuwait's longstanding businesses".
Mr. Marwan Boodai, Chief Executive Officer, Boodai Corp., commented: "JTC has grown over time to become a highly-respected provider of logistics and equipment rental services to world-class customers whether local, regional or global. We continue to grow and see significant growth opportunities both organically and through regional acquisitions to develop the business."
Mr. Boodai emphasized that in 2008 alone, we invested in excess of $35m in new equipments to position JTC for further growth in 2009 and are currently looking at potential acquisition targets in excess of $100m primarily in equipment rental. JTC has a solid balance sheet with strong cashflow, and we see the current market conditions as a unique window of opportunities to capture further market share".
He added:
"The selection of Global Private Equity Funds Group as our partner was based on its global network of relationships and track record in creating sustainable and long-term value in other businesses where it invested."
GulfMerger acted as a sell-side advisor to Boodai Corp. on the transaction.
Posted by Nadeen El Ajou
