Investcorp, a global provider and manager of alternative investment products, and Automak Automotive Company, the leading independent vehicle leasing and rental company in Kuwait, announced that a definitive agreement has been signed under which Investcorp’s Gulf Opportunity Fund will acquire a 35% stake in Automak through a capital injection.
Founded in 2002 by Al Kharafi Projects Co and Ghazi Omar, Automak is one of the few major players in the vehicles rental and fleet leasing business with over 15% market share in Kuwait. Automak operates a fleet in excess of 4,500 vehicles and provides a wide spectrum of services and products including vehicle leasing, rental, quick service and distribution of spare parts, tires and lube oil. Its premier clients include national oil companies, public ministries and multinational corporations.
The vehicle rental and leasing sector is a growing industry in the GCC region as companies seek to de-lever their balance sheets and favor renting fleets of vehicles versus ownership. In Kuwait, the sector is expected to sustain its strong growth, supported by favourable demographics, further expansion of the oil sector and increased government expenditure. This trend is expected to continue across the GCC and the wider MENA region.
Mohammed Al Shroogi, Investcorp’s President, Gulf Business, said: “Automak is our sixth investment in the region and our second in a strong and established Kuwaiti company.
We are proud to be entering into this partnership with Automak and its shareholders. We believe Automak is a market leader in an attractive sector with a robust business model and is well positioned to grow locally and regionally.