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|| Bahrain investor's summer acquisitions in Spain and US: $550 million

bahrain-two2012.jpgInvestcorp, the Bahrain-based investment firm, has acquired two firms from Spain and US during the summer for a total of $550 million.

The first acquisition was Rogers Minnesota-based Archway, a provider of marketing logistics and fulfilment services in North America, for approximately $300 million. (The company operates over four million square feet of warehouse facilities across 14 major metropolitan areas throughout the United States and Canada.) The second acquisition was Spain's Esmalglass, a supplier of intermediate products for the ceramics industry for $250 million.

Investcorp is listed in the Middle East Investors Directory with the code OR30.

More details follows

Investcorp, the alternative investments specialist, announced today its acquisition of Rogers, Minnesota-based Archway Marketing Services, Inc., a provider of marketing logistics and fulfilment services in North America, for approximately $300 million, which represented less than 10x EBITDA.

Archway utilizes a sophisticated technology platform to execute sales and marketing programs by procuring, managing and distributing marketing materials, in-store signage, samples and products on behalf of its large group of Fortune 500 clients. The company operates over four million square feet of warehouse facilities across fourteen major metropolitan areas throughout the United States and Canada. Investcorp will work closely with Archway's management team to further grow its customer base and consolidate the industry.

"Over the past four years, despite economic headwinds, Archway has more than doubled in size, broadened its service offerings, and emerged a leader in the marketing logistics and fulfilment industry," said Chris McCollum, Managing Director at Investcorp. "We look forward to partnering with Archway to continue this strong growth and expansion of its leadership position in this growing industry."

Archway was acquired from an investor group led by Tailwind Capital, Black Canyon Capital and members of the management team.

"Investcorp's operational and financial resources are tremendous assets to Archway as we seek to build on our success - increase our scale, broaden our service offerings and become more valuable to the clients we serve," said Clay Perfall, CEO of Archway. "We're excited by the opportunity to continue our progress with the support and sponsorship of Investcorp."

GE Capital Markets, Inc. and ING Capital LLC served as Joint Lead Arrangers and Administrative Agents of the senior debt financing. The mezzanine financing was provided by Audax Group and Oaktree Capital Management, L.P.

Investcorp was advised by PricewaterhouseCoopers, Gibson Dunn & Crutcher and K-2 Partners. Piper Jaffray & Co. also acted as financial advisor to Investcorp. Robert W. Baird & Co. Incorporated acted as sellside advisor for Tailwind Capital and Black Canyon Capital.


Investcorp, the international alternative asset manager, announced today that it has acquired Esmalglass, a leading global supplier of intermediate products for the ceramics industry, from international investment firm 3i and some of the company's founders. While Investcorp's corporate investment team has been investing in leading businesses in Europe for 30 years, this marks the Firm's first transaction in Spain. Terms of the transaction were not disclosed.

Established in 1978 in Villareal, Spain, Esmalglass produces high quality ceramic glazes and colours, as well as inkjet inks, an innovative and rapidly growing product used to decorate tile surfaces. Esmalglass' products are sold to more than 450 customers worldwide. The company's global activities are supported by manufacturing and mixing plants in Spain, Brazil, Portugal, Italy, Russia, Indonesia and China, as well as by large design and technical assistance teams in all the major ceramic markets across the world. In 2011, Esmalglass generated a turnover of approximately Euro 270 million.

Daniel Lopez-Cruz, a Managing Director in Investcorp's corporate investment team in London, said: "Investcorp's depth of experience in a range of markets has enabled us to identify interesting investment opportunities in Europe in these challenging economic times. Esmalglass operates in a global industry that has been consistently growing over the last decade. The company markets a wide range of mission critical intermediate products for ceramic and porcelain tile manufacturers around the world. It also provides unparalleled design support and technical assistance to its clients.

"We're excited about the company's growth prospects due to its strong franchise in emerging markets - over 50% of sales come from Latin America, Middle East and Asia - and its leading position in the fast growing inkjet ink technology sector. We're also backing an extremely experienced management team that has been responsible for driving the company to its current preeminent position and which is fully committed to taking Esmalglass to its next phase of development."

Dr. Vicente Bagán and Dr. Antonio Blasco, Co-CEOs of Esmalglass, said: "Investcorp is a truly global investment firm with an impressive track record assisting and developing international businesses. We see significant expansion opportunities around the world and view Investcorp as an ideal partner to back and support our international growth plans. This transaction provides us with a strong capital base and an experienced partner to pursue these opportunities. In addition, the reinvestment alongside Investcorp by the management team and some of Esmalglass' original founders provides the required continuity to the company's strategic plan."

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