Abraaj sells Septech at 39% profit

Abraaj Capital has sold its majority stake in Septech Holdings, generating a 39% internal rate of return (IRR) over a three-year holding period, the regional private equity players has revealed.

The Abraaj stake, which was acquired through the Abraaj Buyout Fund (ABOF) in 2004, was sold to David Heffernan, Septech founder and CEO.

Founded in 1997 and headquartered in Sharjah, UAE, Septech's main activity was concentrated on packaged wastewater systems at the time of acquisition. Today Septech is active in water and wastewater related systems, products and services, including landscaping and the environment, pre-cast concrete products and marinas.

Since Abraaj acquired the company Septech has focused on achieving significant penetration in regional markets through tie-ups with strategic partners and the introduction of new products and services. For the six-month period ending June 2007 Septech posted a 114% increase in revenues compared to the same period last year.

Arif Naqvi, vice chairman and CEO of Abraaj Capital, said: "In 2004, Septech was an attractive acquisition candidate due to its profitability, significant market potential, operational strength and exceptional management.

"Three years later, we are extremely pleased to have been able to position this company for further growth - and to have generated such a significant IRR for our investors. We wish the company and David Heffernan great success in the future.

"This exit follows the extremely successful exits for ABOF of ONIC Holding (84% IRR), Aramex (68% IRR) and Amwal (101% IRR). We are delighted to continue the extremely healthy performance of the fund and expect to have divested from its remaining portfolio by 2008, making it a six-year cycle of completion at very profitable terms to all our investors, in line with the best performing funds globally."

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