AbraajAbraaj finalises US$1.41 billion acquisition of 100 per cent of Egyptian Fertilizers Company

Acquisition made through Infrastructure and Growth Capital Fund and Abraaj Buyout Fund II

Dubai Capital Group among other prominent co-investors

Dubai, June 3, 2007: Abraaj CapitalAbraaj Capital, the premier investment firm specialising in private equity investment in the Middle East, North Africa and South Asia (MENASA) region, announced today the closing of the largest private equity acquisition in the history of the Middle East and North Africa.

Abraaj CapitalAbraaj Capital's US$1.41 billion leveraged buyout (LBO) acquisition of 100 per cent of the shares of Egyptian Fertilizers Company (EFC)Egyptian Fertilizers Company (EFC), a private joint stock company and one of Egypt's largest private-sector fertilizer manufacturers and exporters, was made by the firm through its Infrastructure and Growth Capital Fund (IGCF) and Abraaj Buyout Fund II (ABOF II).

Dubai Capital Group (DCG)Dubai Capital Group (DCG), the regional asset management arm of Dubai Group, Saudi-based Rashed Al Rashed & Sons GroupRashed Al Rashed & Sons Group and other prominent regional firms have co-invested in this historic transaction. Together with Abraaj CapitalAbraaj Capital, these strategic partners will pursue further growth opportunities in this fast-growing sector across the Middle East and Africa. Mustafa Farid, Chief Executive Officer of DCGDCG, will join AbraajAbraaj representatives on the Board of EFCEFC.

Deutsche BankDeutsche Bank acted as advisors and provided the acquisition finance for the EFCEFC transaction.

EFCEFC was established in 1998 as a free-zone joint stock company in the Northwestern Suez Economic Zone, near Egypt's Sokhna Port. The company, which operates two factories and employs approximately 600 staff, distributes its products worldwide. EFCEFC's main products are granulated urea and liquid ammonia, nitrogen-based fertilizers that are widely used in the agricultural industry in Egypt and abroad. Especially in the United States and Europe, demand for urea is increasing as a result of expanded production of biofuels such as ethanol.

Sheikh Abdulrahman Ali Al Turki, Chairman of Abraaj CapitalAbraaj Capital, said: "The region is witnessing unprecedented growth in both foreign and domestic investment. The acquisition of EFCEFC exemplifies our confidence in Egypt's increased attractiveness as an investment destination. Rising levels of regional cross-border capital flows are leading to greater economic integration and an even stronger MENA economy."

Arif Naqvi, Vice Chairman and Chief Executive Officer of Abraaj CapitalAbraaj Capital, said: "The size and scope of this transaction represents a landmark for the region and the private equity industry here. EFCEFC is one of the most efficient firms in the high-growth global fertilizer industry. With state-of-the-art manufacturing facilities, an experienced management team, and competitive labour and production costs, EFCEFC will continue to lead the sector in Egypt, while also increasing its international reach."

He continued: "Today's announcement signals Abraaj CapitalAbraaj Capital's ongoing commitment to the economic development of Egypt, following our landmark investment in Cairo-headquartered EFG-Hermes last year."

In September 2006 AbraajAbraaj became the single largest shareholder in leading investment bank EFG-Hermes by way of a capital increase bringing AbraajAbraaj's own issued share capital to US$1 billion. Abraaj CapitalAbraaj Capital is today one of the largest foreign investors in Egypt.

-Ends-

About Abraaj CapitalAbraaj Capital:
Abraaj CapitalAbraaj Capital is the premier investment firm specialising in private equity investment in the Middle East, North Africa and South Asia (MENASA) region. The management team has brought together some of the most compelling and successful transactions in the history of leveraged acquisitions across the region.

With over US$4 billion of assets currently under management, AbraajAbraaj has pioneered institutionalizing private equity practice in the region and is setting trends and benchmarks for others to follow.

Winner of industry awards including 'Middle East Private Equity Firm of the Year' from Private Equity International (2006 & 2007), the Banker Middle East Award for 'Best Private Equities Institution' in 2006 and for 'Outstanding Contribution to Financial Services in the Middle East' in 2007. Arabian Business recently recognized AbraajAbraaj among the 50 Most Admired Companies in the GCC. AbraajAbraaj is also the first pure private equity firm to be registered by DFSA to operate out of Dubai International Financial Centre (DIFC).

Apart from managing its' seven private equity funds, Abraaj CapitalAbraaj Capital Holdings Limited is also the single largest shareholder in the leading regional investment bank EFG-Hermes. ACHL itself is extremely well capitalized, with issued share capital of US$1 billion. Its 110 professionals come from 27 nationalities and achieve a coverage that spans the MENASA region For more information please visit www.abraaj.com

For further information, please contact:
Nicholas Nesson
ASDA'A Public Relations
Exclusive Affiliate of Edelman,
Middle East & North Africa
Dubai,
UAE;
Tel: 971-50-4785324;
Fax: 971-4-3356080;
E-mail: n.nesson@asdaa.com

© Press Release 2007

 

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