NBK Capital Partners and Gulf Capital provide growth capital to leading Jordanian garment manufacturer

22

Investment will enable Classic Fashion Apparel Industry to expand production facilities and increase annual exports beyond 60 million garments

The investment will enable Classic Fashion Apparel – one of the biggest private sector employers in Jordan with over 24,000 employees and a turnover of US$450m – to accelerate the expansion of production facilities.

Dubai, UAE: NBK Capital Partners and Gulf Capital have partnered for the first time to make a strategic investment in Jordan’s Classic Fashion Apparel Industry Ltd. Co., one of the biggest private sector employers in Jordan with over 24,000 employees. The investment will enable Classic Fashion Apparel to enter the next stage of its development, accelerating the expansion of production facilities.

Founded in 2003, Classic Fashion Apparel has achieved significant growth and is now a recognised global industry player, with an annual turnover of over US$ 450 million. The company has longstanding relationships with global retail giants such as Walmart, Under Armour, Adidas, American Eagle, JC Penney, Hanes and GAP. Producing over 60 million apparel pieces annually and accounting for a 27% share of Jordan’s apparel exports, the company is making a considerable contribution to Jordan’s economy.

Yaser Moustafa, Senior Managing Director at NBK Capital Partners, an alternative investment firm that advises on providing flexible growth capital to mid-sized companies in the Middle East, North Africa and Turkey, said: “We are delighted to be making our first investment in Jordan with a company that not only has an impressive growth story, but whose commitment to excellence has earned it the trust of some of the world’s most popular brands. Its highly experienced executive team has built a world-class operation, and we are excited to be partnering with Gulf Capital to support Classic Fashion Apparel’s next chapter.”

Walid Cherif, Senior Managing Director and head of the private debt business at Gulf Capital, one of the largest and most active alternative asset managers in the Middle East, added: “This investment highlights the robust market conditions for flexible capital in the MENA region. The strength of Classic Fashion Apparel’s business – and both Gulf Capital’s and NBK Capital Partners’ track record of deploying capital into industry-leading companies – highlights our commitment to generating superior opportunities and returns for investors.”

K.S. Sanal Kumar, Chairman and Managing Director, Classic Fashion Apparel Industry, said: “We launched 15 years ago with 300 staff and 130 machines and our annual turnover was just US$2 million. It gives me great pride that we now have a thriving workforce manning 10,000 machines and, through our partnership with regional institutional investors NBK Capital Partners and Gulf Capital, we are now in a position to enter the next phase of our long-term growth trajectory.” Ithmar Invest acted as financial advisor and arranger to Classic Fashion Apparel Industry.

The deal marks the fourth investment for the US$160m NBK Capital Partners Mezzanine Fund II that is now more than 50% deployed. Headquartered at Dubai International Financial Centre, NBK Capital Partners has advised on investments of over US$1 billion and has a track record of 17 realizations from 30 investments, the highest number of profitable exits by an alternative investments firm in the region over the past decade.

The investment is the 13th for Gulf Capital’s Private Debt funds and the fifth investment for its Gulf Credit Opportunities Fund II, with nearly 50% of the fund invested across defensive sectors across the Middle East and Africa region.

About NBK Capital Partners:

NBK Capital Partners is the alternative investments arm of Watani Investment Company K.S.C.C. (“NBK Capital”). The firm targets companies in the MENA region presenting significant growth potential and opportunities for value creation. It currently advises investment funds across Private Equity and Private Credit, as well as a newly launched Real Estate platform. Since the launch of NBK Capital’s first fund in 2007, NBK Capital Partners has successfully closed 30 investments across a variety of sectors, with all 17 exits to date successful. The firm is a pioneer in advising on regional private debt investments and its management and exits, having executed 12 mezzanine transactions since inception of the first mezzanine fund in 2009. The firm is headquartered in Dubai International Financial Centre, UAE, and its parent company, NBK Capital has offices in Kuwait City with a presence in Manama and Istanbul.

About Gulf Capital:

Gulf Capital is one of the leading alternative asset management firms in the Middle East, investing across several asset classes including Private Equity, Private Debt and Real Estate. The Firm currently manages over AED 14.7 billion (US$4 billion) of assets across 10 funds and investment vehicles. Gulf Capital’s mission is to grow capital and build value with world-class expertise and best practices to generate sustainable superior performance for all stakeholders. Gulf Capital invests its own capital alongside its fund investors’ capital in all of the funds it launches. Gulf Capital received regional and international recognitions from industry peers and experts. The Firm was awarded the “Best Private Equity Firm in the Middle East” Award by Banker Middle East Magazine in 2011, 2012, 2013, 2014 and 2015 and the “Best Private Equity Firm” in the Middle East and North Africa by Private Equity International, as well as “Best SMEs Credit Fund in the Middle East’ in 2015 and “Best Alternative Asset Management Firm in the Middle East” in 2016 and 2017. Gulf Capital also launched a Private Debt business, Gulf Credit Partners, which offers credit and mezzanine financing to meet the funding needs of fast-growing companies and to provide acquisition finance across the Middle East, North and Sub-Saharan Africa, as well as Turkey. With its private equity, real estate and private debt initiatives, Gulf Capital is today one of the largest and most diversified alternative asset managers in the Middle East.