Growth investor GrowthGate has exited its investment in Roots Steel International (RSI), selling its minority stake to a consortium of majority shareholders to realise a record return of three times the initial investment.
For GrowthGate this was the first exit from its Saudi investment.
Karim Souaid, managing partner, GrowthGate, said, “GrowthGate’s partnership with RSI’s core shareholders and management has been most valuable for propelling the company from a local player into a regional challenger. RSI has established a leading position in steel fabrication in record time, using state-of-the art designs, high-end execution and superior delivery of intricate structures for large-scale projects across the region. RSI has a dynamic management team, an excellent market position, and attractive growth prospects. We wish the RSI team much success as they start the next chapter in the company’s history.”
Since investing in 2012, GrowthGate has assisted RSI in expanding its operations and markets by acquiring Ginco Steel and Polyco in 2011, opening the UAE market for the company and further diversifying its business.
In addition, GrowthGate has further supported a strategic alliance between RSI and China’s Zhejiang Jinggong Construction Industry Group. The company presently has plants and operations in Saudi, UAE, Syria and Egypt.
Since its inception in 2007 GrowthGate has been focused on the middle-market segment principally in the Gulf Cooperation Council (GCC) region along with other select markets in the Middle East.
The group currently has eight companies in its portfolio. The companies are located in the MENA region as well as in Asia, Europe and the US and are managed by their founders.
Copyright © 2013 AltAssets