Taking into account this transaction and prior dividends received, Growthgate Capital has realized a triple returns on its investment in Able. The preparations for Able’s IPO which were announced in the first quarter of 2014, were set aside indefinitely in favor of Kerry’s strategic buyout offer.

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 with a total market cap of HK$20.5 billion as of 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 Association of Southeast Asian Nations (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,” said 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.

© The Saudi Gazette 2015

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