Bahrain’s Investcorp sells industrial supplies firm

Paris-based private equity firm PAI hoovers up European distribution firm IPH Group

(Picture for illustrative purposes only)

(Picture for illustrative purposes only)

Bahraini alternative investment manager Investcorp has completed the sale of a Europe-focused industrial supplies distribution firm.

Investcorp said in a statement on Monday that ownership of IPH Group would be transferred to PAI Partners, a Paris-based private equity firm and would create €210m (US$273m) of realisation proceeds for Investcorp and its clients.

Since acquiring IPH in 2006, Investcorp has seen the firm triple sales to €860m and grown EBITDA from €12m to €62m.

“Our ability to secure a healthy return from the sale of IPH Group despite the ongoing turbulence in the euro zone market is evidence of our ability to identify appropriate exit opportunities,” said Mohammed Al-Shroogi, president, Gulf business, at Investcorp.

IPH distributes a large range of industrial supplies across the European continent and has access to networks in countries including France, Germany, the Netherlands, Belgium and Romania.

Last month, Investcorp bought a controlling stake in Scotland-based oil fields services provider Hydrasun. The deal, estimated at US$150m to US$300m, took Investcorp’s Gulf Opportunity’s spend close to its full deployment of US$1bn.

Investcorp last year sold truck parts distributor FleetPride to private equity firm TPG for more than US$1bn.

The investment management firm as of June 30 2012 had US$11.5bn in assets under management.

In the first half of its more recent financial year, Investcorp made a net profit of US$39.2m, compared with US$5.2m a year previous.

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