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Gulf Capital exits stage left from AmCan: Abu Dhabi-based private equity giant GulfCapital sold off its controlling stake in sports nutrition and healthy foods distribution company AmCan to an unnamed MENA-based FMCG distributor, according to a press release (pdf). The transaction marked a “highly profitable” exit from the alternative asset manager’s third buyout fund, GC Equity Partners III, the press release said, without disclosing the exact value of the transaction.
Background: Gulf Capital closed its USD 750 mn (AED 2.76 bn) GC Equity Partners III Fund in 2014. The fund was used to invest in AmCan in 2016.
This is not Gulf Capital’s first exit from a food distribution company: Back in 2022, Gulf Capital sold off 100% of Chef Middle East to Nasdaq-listed specialty food distributor the Chefs’ Warehouse, according to a press release.
Throughout the seven years of Gulf Capital’s ownership, AmCan saw a 50% increase in both revenues and gross margin, achieved through geographic expansion, optimization of distribution channels, and the introduction of new brands and products.
What they said: “This control growth buyout with a deep focus on operational improvement and earnings growth, followed by a highly successful sale to a regional strategic buyer, is a great illustration of Gulf Capital’s unique investment strategy in our high growth region,” Gulf Capital CEO Karim El Solh said.
Advisors: Global Gate Capital, Eversheds Sutherland, and PwC provided counsel to Gulf Capital for the transaction, while Nucleus Consulting and Ashurst advised the buyer.
Expect further exits from Gulf Capital in the near future: Gulf Capital is looking to exit from AmCan’s sister company, sports e-commerce platform Sporter.com, AmCan’s sister company, within the next two to three years after concluding its work on the company’s growth and runway plans, El Solh told Enterprise. The PE firm is also planning a few more exits in 2024, El Solh added. Gulf Capital acquired a controlling stake in Sporter.com back in 2016 alongside AmCan.
About Gulf Capital: The asset management firm focuses primarily on late-stage control buy-outs, growth capital, private debt and real estate projects in the Middle East region. The company currently holds some USD 2.5 bn in assets under management.
