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

Manama, Bahrain (ots/PRNewswire) -

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.

(Logo: http://photos.prnewswire.com/prnh/20140321/675211 )

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

Photo:
http://photos.prnewswire.com/prnh/20140321/675211

ots Originaltext: Growthgate Capital
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