Bahrain, 27 January 2009 - Investcorp, the asset management firm specializing in alternative investments, announced today that its US portfolio company, American Tire Distributors, has acquired Am-Pac Tire for an enterprise value of $75 million.

The acquisition will enable American Tire to offer a wider product range and distribution network to its dealer customers, and is expected to strengthen American Tire's US market position. This acquisition reflects Investcorp's strategy of making add-on investments to its portfolio companies to increase value, especially during the current economic conditions, which are generating interesting buying opportunities.

American Tire, which was acquired by Investcorp and its investors in 2005, is the leading distributor of replacement tires in the United States.  Founded in 1935, with headquarters in North Carolina, American Tire distributes a wide range of tires, custom wheels and related service equipment and supplies, principally to independent tire dealers throughout the United States.  Am-Pac Tire has its headquarters in Simi Valley, California and generates approximately $300 million in revenue. It is an attractive acquisition due to its complementary geographic overlap, brand and product range that will significantly strengthen American Tire's position in existing markets, as well as enabling it to expand into St. Louis and western Texas.

Mr Timothy Mattar, Managing Director and head of Investcorp's placement business in Bahrain, Kuwait, Qatar and Oman, said: "In this economic environment we must clearly do all we can to stand by and support our portfolio companies. This includes working alongside their management teams to manage liquidity and risks and maintain capital cushions, while also searching for opportunities to make add-on investments to maintain growth. Add-on acquisitions have always been an important part of Investcorp's value enhancement model, but provide an even more meaningful value addition in current market conditions, given the more reasonable valuations of companies we can acquire."

Given current operating conditions in the United States and Europe, Investcorp is working closely with its portfolio company management teams to manage costs tightly and to ensure sufficient liquidity to continue to execute value creation plans such as making add-on acquisitions. Investcorp portfolio companies have made a number of such add-on acquisitions during the last six months. For example, FleetPride, the Investcorp-owned US distributor of truck and trailer parts, has acquired Truck and Trailer Supply, Inc, Bound Brook Safety Co, E H Burrell Co and Automotive Brake Co.

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About Investcorp
Investcorp is a leading provider and manager of alternative investment products. It has offices in the Kingdom of Bahrain, London and New York and is publicly traded on the Bahrain Stock Exchange (INVCORP) and the London Stock Exchange (IVC). Investcorp has five lines of business: private equity, hedge funds, real estate, technology investment and Gulf growth capital. Founded in 1982, Investcorp has grown to become one of the largest and most diverse alternative investment managers in terms of both product offerings and geography. As of September 30, 2008, Investcorp had approximately $17 billion in invested assets under management (AuM).

About American Tire Distributors
American Tire Distributors is one of the United States' largest independent suppliers of tires to the replacement tire market.  It operates 78 distribution centers servicing 36 states.  The company focuses on helping tire and wheel retail dealers compete with larger retailers by offering the most complete, coast-to-coast selection of tires, wheels and related products and value-added services.  American Tire Distributors employs over 2,000 employees across its nationwide distribution center network, including 200 people in its Charlotte-area field support center, distribution center and regional hub.

For further information:
Investcorp (Bahrain)
Firas El Amine
+973 1753 2000

Brunswick Gulf Ltd
Rupert Young / Jeehan Balfaqaih
+971 4 365 8260

Issued on behalf of Investcorp by Brunswick Gulf Ltd

© Press Release 2009