Aug 22, 2019

October 14, 2008 05:53 AM Eastern Daylight Time DUBAI, United Arab Emirates--( BUSINESS WIRE )-- GrowthGate Capital Corporation , the GCC-based specialist buyout firm, announced that it has reached a final agreement to acquire 33.33% of Averda International Ltd. , an integrated waste management concern with solid waste operations concentrated in the Middle East and North Africa. Averda, a privately-held company, which is majority owned by its founders-managers, services more than 2 million people located in some 500 communities, and has consolidated annual revenues of circa $100 million and expected net profits margin of over 15% for the fiscal year 2008. The value of the transaction was not disclosed. Averda is a pioneer in the waste management industry in the Middle East with solid track record for managing municipal and other non-hazardous waste starting in Saudi in mid 80s and progressing to Lebanon in early 90s and to the lower Gulf recently. Averda adopts a ‘Green Company’ policy in producing waste-generated fertilizers and other organic by-products, operating efficient recycling programs, exploring bio-fuel extraction processes, and abiding by low emission standards. “As an integrated private company in a sector that is still under-developed and run -- to a large extent -- by municipal operators, Averda is uniquely positioned to offer tailored services and innovative solutions to the growing population centres and industrial cities of the Middle East,” said Malek Sukkar Averda’s CEO. “By partnering with GrowthGate, a value-added investor with deep roots and access to the GCC markets and the MENA region, Averda is determined to play a central role in the regional waste management sector by bringing together its expertise, resources, and intimate knowledge of markets to capitalize on the current urbanization boom and the unprecedented waste generation ratios, for years to come,” he added. GrowthGate (managed by Keystone) follows a ‘buy and build’ model by partnering with management to build emerging growth businesses into enduring organizations. Structured as a holding company, GrowthGate is free to take a very long-term approach deciding on follow-up investments and on exits without the pressure of fund-like deadlines. This deal marks the fourth direct equity investment by GrowthGate since its capitalization in mid 2007, and the first in a ‘Green Company.’ GrowthGate’s portfolio companies comprise: Able Logistics Group (logistics & transport); Gama Aviation Holding (private jets and aviation business); and Roots Group (construction-related materials).