Clyde & Co Advises ADIC MENA Partners On Majority Stake LBO Of Unitra METS Group

(LAWFUEL) – Clyde & Co LLP has advised ADIC MENA Partners, a private equity fund managed by Abu Dhabi Investment Company (ADIC), on the acquisition of a majority stake in the Al Zarouni family’s Unitra METS Group, a Dubai-based speciality beverage distributor with 2008 revenues expected to be in excess of AED 600 million.

Through the acquisition, ADIC acquired 80% of the shares of UNITRA International LLC and Middle East Trading Store LLC – Dubai based companies engaged in the food and beverages trading business and owned by the Al Zarooni family. The share acquisition was structured as a leveraged buy out with financing provided by Mashreq Bank.

ADIC MENA Partners is a USD $500 million (AED 1.836 billion) buy-out fund with a commitment from ADIC of USD $100 million. Clyde & Co is the largest international law firm in the GCC with over 140 legal staff operating out of offices in Abu Dhabi, Dubai and Doha.

The acquisition and all related aspects of the transactions were advised on by a team drawn from Clyde & Co’s Abu Dhabi and Dubai offices. Led by Dubai corporate partner Abhi Jalan with support from Abu Dhabi corporate partner Niall O’Toole, the team included associates Claudine Favali , Mansi Kochhar and Christopher Olive on the corporate side, and Glenn O’Brien with respect to financing.

Commenting on the acquisition, Jalan said: “This transaction is another example of the trend towards private equity involvement in the region’s family owned business sector. “

“Private equity such as seen here is structured to assist family owned businesses with regional expansion plans” he added, “Our involvement was focused on achieving the commercial objectives of the transaction parties in the most efficient way possible. This included the developing, structuring and implementing of what was a fairly complex transaction. “

“The acquisition of the Unitra METS Group clearly highlights ADIC Private Equity’s strategy of buying majority stakes from family and other business owners, using a sensible amount of non-recourse, cash flow based financial leverage,” ADIC said in a statement.

“We are confident this transaction will demonstrate how successfully a private equity firm can partner with a family-owned business to build market-leading regional businesses,” added Robert Wages, Executive Director of ADIC Private Equity.

For further information, contact Clinton Swan, Business Development Manager, Clyde & Co, Middle East
T +971 4 312 8568/ E

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