Arcapita - Bahrain, Atlanta, London and Singapore

ARCAPITA COMPLETES $200 MILLION US SENIOR LIVING ACQUISITIONS IN 2016

22 November 2016 - Arcapita, the global investment management firm, announced today that it has acquired a privately-held portfolio of three senior living communities for a total transaction value of approximately $110 million in the metropolitan areas surrounding Washington D.C. and Atlanta. The properties will be managed by an affiliate of The Arbor Company, an experienced manager specializing in this sector. The transaction follows Arcapita’s acquisition of three senior living communities for a total transaction value of approximately $87 million in Colorado earlier this year, building an approximately $200 million portfolio in the senior living sector in the United States.

The senior living sector is a strategic focus for Arcapita given its long-term investment return potential. In addition, Arcapita’s management team has significant experience in the sector, having previously acquired, managed and exited from a series of senior living investments with a total transaction value in excess of $1.7 billion in the United States and United Kingdom.

Arcapita’s current US Senior Living portfolio now consists of six independent living, assisted living and memory care communities offering a total of 506 units in the metropolitan areas surrounding Washington D.C., Atlanta, Denver and Colorado Springs. The properties are located in affluent suburbs of major US cities and are located in some of the largest and most economically attractive cities in the United States.

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “We see a lot of potential in the senior living sector. Our team has extensive experience investing in the senior living sector, having managed and successfully exited five senior living portfolios, consisting of over 74 properties, in the past. Previous investments both in the United States and United Kingdom have returned attractive IRRs and cash-on-cash multiples to investors. We are excited about the prospects of the latest addition to the portfolio and about working with The Arbor Company, a reputable senior living management company operating in this sector.”

Martin Tan, Arcapita’s Chief Investment Officer, added, “The senior population is the fastest growing demographic in the United States and the 65+ age group is expected to double in size by 2050. The supply of senior housing remains limited in certain sub-markets and the senior housing industry as a whole has outperformed multifamily, office and retail real estate sub-sectors to date. Through its experience in this sector, Arcapita has selected The Arbor Company, an Atlanta-based manager of senior living communities, to oversee the management of its latest acquisition given its over 30 years of experience in the Eastern and Southeastern regions of the United States.”

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ARCAPITA ACQUIRES LOGISTICS PARK IN DUBAI FOR $100 MILLION

18 April 2016 - Arcapita, the global investment management firm, announced today that it has acquired a logistics park in Dubai, UAE, for a total transaction value of approximately $100 million.

The investment comprises nine freehold plots of land in the Al Quoz Industrial Area covering an area of approximately 630000 square feet. The logistics park is strategically located next to Al Khail Road, one of Dubai’s main transport arteries.

By the third quarter of 2016, the site will consist of ten completed warehousing facilities that will be under a long term master lease with a reputable UAE conglomerate. The investment will capitalize on Dubai’s growing logistics market and will offer premium warehousing facilities to tenants in one of Dubai’s most established and sought after industrial areas.

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “We continue to pursue investments in sectors where Arcapita’s management team has built significant expertise. We have managed over $8.1 billion in transactions across the global logistics market, including in the United States, Europe, Asia and the GCC. In particular, we recently successfully exited a $360 million fund, ARC Real Estate Income Fund I, which was focused on investing in the UAE and KSA’s logistics and warehousing market. We are excited about this investment which will provide Arcapita and its investors with stable, recurring income as well as potential capital appreciation.”

Martin Tan, Arcapita’s Chief Investment Officer, said, "Dubai’s logistics market is poised to experience significant growth, driven in large part by its attractive geographical location, well-developed supply chain network, and supportive legislation, which collectively make it an ideal supply and redistribution gateway. In addition to strengthening domestic spending, Dubai’s growing retail sector is expected to generate significant demand for warehousing and logistics facilities as nine million square feet of gross leasing space enters the retail market over the next three years. Reflecting the demand for quality logistics facilities, average rental rates across industrial locations in Dubai have increased by approximately 20% over the past 20 months. We expect this trend to continue, and look forward to delivering attractive returns to our investors through this transaction.”

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ARCAPITA ACQUIRES $85 MILLION US SENIOR LIVING REAL ESTATE PORTFOLIO

18 January 2016 - Arcapita, the global investment management firm, announced today that it has acquired a privately-held portfolio of senior living communities in Colorado, United States, in a joint venture with MorningStar Senior Living, an experienced operating partner specializing in this sector. The transaction value totaled approximately $85 million.

This transaction is expected to be the first in a series of acquisitions of senior living facilities by Arcapita as it looks to develop another sizable senior living portfolio in the United States. Arcapita’s management team has previously acquired, managed and exited from a series of senior living investments with total transaction values in excess of $1.5 billion in the United States and United Kingdom.

The current portfolio consists of three assisted living and memory care communities offering a total of 196 units and 243 licensed beds in Denver and Colorado Springs, Colorado. The modern communities were built in 2013 and 2014 and offer premium, state-of-the-art facilities including large courtyards, fireside living rooms, fitness and spa facilities, massage therapy rooms and other advanced features.

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “The Arcapita team has extensive experience investing in the senior living sector, having previously managed and exited five successful senior living transactions, all of which have returned attractive IRRs and cash-on-cash multiples to investors. We are excited about the prospects of this investment and about partnering with MorningStar, a high quality developer and operator in this sector. Our investment team will continue to pursue investment opportunities in the US real estate sector which offer investors stable income streams.”

Martin Tan, Arcapita’s Chief Investment Officer, added, “The target age group for senior living facilities in Colorado is projected to grow by almost twice the national average over the next five years. Through its experience in this sector, Arcapita has identified a seasoned operating partner in MorningStar Senior Living, a company that has deep expertise in the Western markets of the United States, and a management team with decades of operational experience in senior living.”

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ARCAPITA & AL RAJHI CAPITAL ANNOUNCE THE SAR 1.35 BILLION (USD 360 MILLION) EXIT FROM ARC REAL ESTAT

30 November 2015 - Arcapita and Al Rajhi Capital announced today the successful exit of ARC Real Estate Income Fund for a total transaction value of SAR 1.35 billion. Since its launch in 2010, the fund acquired seven key high quality, income-generating assets in the logistics, warehousing and retail sectors, in the Kingdom of Saudi Arabia and the United Arab Emirates. The fund was jointly sponsored by Arcapita and Al Rajhi Capital.

Commenting on the occasion, Mr. Atif Abdulmalik, CEO of Arcapita, and Mr. Gaurav Shah, CEO of Al Rajhi Capital, said in a joint statement, “We are pleased with the performance of ARC Real Estate Income Fund since our investment five years ago and believe it was the right time to exit the fund to deliver maximum profits for our investors. Throughout its term, the fund performed well, maintaining full occupancy on extended term leases to quality tenants across its portfolio of assets.

“In an extended low interest rate environment, the ARC Real Estate Income Fund proved to be an attractive and stable investment opportunity for its investors, delivering an average annualized yield of 7.2%, and distributing an annual yield in excess of 9% over the last two years. The fund delivered approximately 18% growth in net asset value during this term. The performance of the fund demonstrates the attractiveness of the KSA and UAE markets for the logistics sector as well as the expertise of Arcapita’s and Al Rajhi Capital’s fund managers in sourcing and acquiring investments for the fund.”

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ARCAPITA ACQUIRES SAADIYAT RESIDENTIAL COMPLEX

14 July 2015 - Arcapita, the global investment management firm, announced today that it has acquired phase one of Saadiyat Beach Residences, a premium residential apartment complex located on Saadiyat, Abu Dhabi, from Mubadala Development Company.

The residential complex is composed of three low-rise buildings within a gated community and is under a three-year master lease to the Tourism Development & Investment Company (TDIC). Developed by TDIC in 2013 to high-quality standards, the residential complex is composed of 285 one to three-bedroom apartments and is designed to foster a close-knit community in addition to providing high-end facilities and amenities.

Martin Tan, Arcapita’s Chief Investment Officer, said, "Abu Dhabi provides real estate investors with exposure to the GCC region, while offering steady and stable growth prospects. We believe that the our investment in Saadiyat offers a unique access to the residential real estate sector in Abu Dhabi, which is driven by significant government-led development projects and a growing population coupled with limited high-quality residential supply. We are acquiring a high-end residential complex which provides residents with a luxury home experience and a strategic location close to Abu Dhabi’s central business district.”
Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “We are pursuing investments in sectors where Arcapita’s management team has built a significant track record and capabilities, such as residential real estate. We are pleased to announce our first investment in Abu Dhabi, one of the most established economies in the Middle East. We are actively developing our global deal pipeline and expect to complete additional investments during 2015.”

Saadiyat is a 27 square kilometer multi-faceted island destination featuring a wide range of luxurious hotels and resorts, a beach club, a world-class golf course and a variety of leisure and retail offerings, while also providing world-renowned educational opportunities. The island’s cultural district will encompass high profile museums including the Louvre Abu Dhabi, Guggenheim Abu Dhabi and Zayed National Museum. The New York University Abu Dhabi campus is also located on Saadiyat, which is located five minutes from downtown Abu Dhabi.

The transaction was partly funded by a Sharia’ah-compliant financing facility provided by Abu Dhabi Commercial Bank.

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ARCAPITA SELLS US REAL ESTATE PORTFOLIO FOR $640 MILLION

10 June 2015 - Arcapita, the global investment management firm, announced today the sale of a real estate portfolio of senior care communities with over 16 facilities and approximately 4,000 residential units located across the United States. The portfolio was sold to NorthStar Healthcare Income, Inc., a real estate investment trust (REIT), for a transaction value of approximately $640 million.

The properties are one of the largest standalone portfolios of continuing care retirement communities in the United States. The majority of the facilities are full-service communities that offer a mix of independent living, assisted living, Alzheimer’s care and skilled nursing care. The portfolio is managed by Watermark Retirement Communities, Inc.

Martin Tan, Arcapita’s Chief Investment Officer, said, “Over the past seven years, senior housing in the United States has outperformed other property types. Demand continues to be driven by a number of factors, including an aging baby boomer population, an increasing recognition of the value provided by premium communities and the broader housing market recovery. Although the US real estate market experienced a period of difficulty following the global economic crisis, Arcapita’s investment and post-acquisition team pursued a number of successful strategic and operational initiatives. As a result of these initiatives, the portfolio maintained strong occupancy levels and net operating income grew by 41% from 2010 to 2014.”

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “This transaction represents Arcapita’s fifth successful exit in the senior living sector, which continues to benefit from favourable long-term fundamentals. We are pleased with the profitable outcome of this investment, which follows a series of positive and notable exits achieved over the last two years by Arcapita. During this period we have delivered approximately $3.0 billion in exit proceeds to our investors. We continue to focus on maximizing the value of the current investment portfolio and on introducing new investments opportunities to our investors. In particular, Arcapita will continue to pursue opportunities in the senior living sector in the US.”

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ARCAPITA COMPLETES SALE OF J.JILL TO TOWERBROOK

23 May 2015 - Arcapita, the global investment management firm, announced today the completion of the sale of J.Jill Group Inc. (“J.Jill”), a leading US-based multi-channel retailer of women’s apparel, accessories and footwear, to TowerBrook Capital Partners L.P., a New York and London-based investment management firm. The parties did not disclose the transaction value.

Originally founded in 1959 and headquartered in Quincy, Massachusetts, J.Jill provides inspired styles to its loyal customer through an expanding base of more than 250 retail stores, a well-established catalog, and an extensive ecommerce platform. This strong omni-channel presence enables J.Jill to establish and maintain strong connections with new and existing customers however she prefers to shop. Arcapita had acquired a majority stake in J.Jill in April 2011.

Martin Tan, Arcapita’s Chief Investment Officer, said, "Over the past three years, J.Jill has grown revenues to record levels and has opened 24 new stores across the United States in what has been a difficult environment for most retailers in women’s apparel. The company has successfully established a highly-recognized brand and a very loyal customer base among a growing consumer demographic by offering style, comfort, and quality.”

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “Since Arcapita’s investment, and with the support of the J.Jill Board and Arcapita’s US investment and post-acquisition team, the management of J.Jill has executed a successful strategy that resulted in industry-leading growth and margin performance. We are very pleased with the profitable outcome of this investment, which follows a series of notable exits achieved in recent months. With the exit from J.Jill, Arcapita has delivered approximately $2.5 billion in exit proceeds to investors during the past two years.”

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ARCAPITA SELLS FREIGHTLINER FOR APPROXIMATELY US$800 MILLION

30 March 2015 - Arcapita, the global investment management firm, announced today the sale of Freightliner Group Limited (“Freightliner”), an international rail freight operator, to Genesee & Wyoming Inc., a US-based international owner and operator of short line and regional freight railroads. Consideration for 100% of the shares was approximately US$800 million (£525 million) and the assumption of liabilities. Freightliner management will continue to hold an approximate 5% ownership interest post sale.

Headquartered in London and with over 2,500 employees, Freightliner is a leading UK rail logistics company, moving containers and heavy goods between ports and inland distribution hubs. The company was privatized from British Rail in May 1996 via a management buyout. The business operates primarily in Great Britain and is actively pursuing international growth. Freightliner has four main operating subsidiaries: Freightliner Intermodal, the largest inland hauler of maritime containers in the UK; Freightliner Heavy Haul, transporting coal, aggregates, cement and petroleum; Freightliner International, currently operating in Poland and Australia, and in several other European countries through its subsidiary ERS Railways; and Freightliner Maintenance, the company’s in-house provider of fuelling and maintenance services.

Martin Tan, Arcapita’s Chief Investment Officer, said, "Since Arcapita’s acquisition of Freightliner in 2008, the company has grown its revenues by 87% and EBITDA by approximately 70%, despite the slow European economic recovery following the global financial crisis. The management team, working with the Freightliner board, have transformed Freightliner into a global rail business, by extending operations to the Middle East, Australia and across continental Europe, completing accretive add-on acquisitions while growing the core UK business.”

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, commented, “We are very pleased that the investment in Freightliner has resulted in a profitable outcome for our investors. Arcapita’s European private equity investment and portfolio management teams have supported Freightliner’s highly-professional management team and significantly enhanced the company’s growth. The sale of Freightliner follows a series of other successful exits achieved in the US and the Middle East in recent months. We continue to focus on delivering a number of other significant exits within our global investment portfolio in the near term while also working on closing new investment opportunities inthe GCC region, US and Asia.”

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ARCAPITA SELLS PODS FOR MORE THAN US$1B

3 February 2015 - Arcapita, the global investment management firm, announced today the sale of PODS, Inc. (“PODS”), the leading provider of portable storage and moving solutions for residential and business customers in North America, to the Ontario Teachers' Pension Plan (“OTPP”) for a transaction value in excess of $1 billion.

PODS is one of the most recognizable brands in the storage and moving industries, with market coverage of nearly 250 million people. The company pioneered the portable moving and storage industry and today operates in over 150 locations, both corporate and franchise owned, in the United States, Canada, Australia and the United Kingdom. To date, the PODS network has completed more than 500,000 long-distance moves, exceeded 2 million deliveries and has more than 150,000 PODS containers in service.

Martin Tan, the Chief Investment Officer of Arcapita said, "Since Arcapita’s acquisition of PODS in December 2007, we have worked to continue the company’s growth profile while also enhancing its operational and network efficiencies. The management team, working with the PODS board, has captured profitable growth in both the moving and storage divisions of its business, while simultaneously penetrating new market opportunities in the commercial and industrial sectors. PODS achieved dramatic market share growth, while continually strengthening all aspects of its operational infrastructure.”

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said “We are very pleased with the successful outcome of the PODS investment for our investors. For Arcapita, the ability to create value by driving operational and financial improvements in our investment portfolio is a critical success factor. We continue to pursue investments in sectors such as logistics and business services where Arcapita has built a significant track record and capabilities.”
Abdulaziz H. Aljomaih, the Chairman of Arcapita’s Board of Directors, added, “Arcapita has capitalized on favorable market conditions by exiting a number of portfolio investments. By completing the sale of PODS, we have delivered approximately $2 billion in exit proceeds to our investors during the last 18 months. We have an active new deal pipeline and expect to complete a number of new investments over the next few months. The board and management continue their focus on maximizing value for our shareholders and investors”.

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ARCAPITA EXITS STAKE IN $1.4B LUSAIL INVESTMENT

11 January 2015 - Arcapita, a global alternative investment management firm, announced today that it has sold its 50 percent stake in Lusail Golf Development L.L.C. ("Lusail Golf"), to Barwa Real Estate Company Q.S.C. Lusail Golf owns the development rights to a 3.66 million square meter plot of land north of Doha, Qatar. The total value of the plot is approximately $1.4 billion.

The plot owned by Lusail Golf is located in Lusail City, a master-planned development covering an area of 21 square kilometers. Lusail City, one of the GCC region's most high profile real estate developments, is sponsored by Qatari Diar Real Estate Investment Company. Upon completion, the development is expected to include residential and commercial developments as well as districts focused on education, media, energy and entertainment.

Mr. Atif A. Abdulmalik, Chief Executive Officer of Arcapita, said, "Arcapita has an established track record of master-planning and developing large-scale golf residential communities having made successful investments in leading projects in Dubai and Bahrain. Pursuing investment opportunities in real estate markets across the GCC region continues to be a key part of our global investment strategy."

Hisham A. Al Raee, Arcapita’s Chief Operating Officer, added, "The Arcapita team developed the master plan and design concepts for one of the largest single plots in Lusail City. During the holding period, the team focused on attracting development partners and optimizing land utilization. We are pleased that our investment in Qatar has resulted in a profitable outcome for our investors."

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ARCAPITA COMPLETES $100M EQUITY RAISE

18 November 2014 - Arcapita, the global alternative investment manager, announced today that it has successfully raised its targeted $100 million in equity capital from shareholders in the GCC region to fund its growth strategy.

Arcapita is now focused on two clear areas of opportunity: asset management of an existing $3 billion investment portfolio and the growth opportunity of new Shari’ah-compliant alternative investment products and services.

The new equity will allow Arcapita to grow its asset management capabilities and develop further revenue streams. The firm will focus on originating investments in asset classes, sectors and geographical regions where its management has built significant expertise over the past 17 years.

Mr. Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said, “Arcapita was formed to originate high-quality Shari’ah-compliant alternative investment opportunities for investors. With the support of our shareholders and investor base, we have built a strong platform to source and manage Shariah compliant investments worldwide. Over the last 17 years, Arcapita’s investment professionals have completed more than 70 investments with a transaction value of approximately $30 billion across the globe.”

Arcapita will initially pursue new investment opportunities within the GCC region followed by other international markets including the US, Asia and Europe. Arcapita’s investment teams will offer real estate and private equity investments on a “deal-by-deal” and funds basis to a select group of investors. In addition, Arcapita will offer services, including asset management and advisory services.

Mr. Abdulaziz H. Aljomaih, Arcapita’s Chairman of the Board of Directors, added, “We are pleased that the equity offering was oversubscribed and to have expanded our shareholder base to include a prominent group of sovereign wealth funds, institutional investors, high net worth individuals and family offices from across GCC region.”

As well as growing the shareholder base, Arcapita will expand its Board of Directors, adding further depth and specialist experience and strengthening the firm’s governance structure. The expanded Board of Directors will consist of Mr. Abdulaziz H. Aljomaih, Head of International Investments at Aljomaih Holding Co.; Mr. Ghazi F. Al Nafisi, Co-Founder and Chairman of Salhia Real Estate Company K.S.C.; Mr. Abdulrahman A. Al Muhanna, Managing Director and Member of the Board of Directors of Almarai Company; Mr. Amer A. Al Fahim, a Supervisory Board Member of Al Fahim Group; Mr. Khalid J. Bin Kalban, Managing Director and Chief Executive Officer of Dubai Investments PJSC; Mr. Usama M. Al Barwani, Executive Director of MB Holding; Mr. Noor Rahman Abid, previously the Assurance Leader for Ernst and Young in the Middle East; a member from Bahrain Mumtalakat Holding Company; and Mr. Atif A. Abdulmalik, Chief Executive Officer of Arcapita.

Arcapita’s business strategy reflects a commitment to generating long-term value for its shareholders and clients through a risk-adjusted investment approach. The firm’s business model will leverage long-standing relationships with its investors and operating partners. Arcapita’s balance sheet is fully-equity funded and the firm will aim to maintain a lower and more flexible cost base relative to its peers.

Arcapita recorded net income of approximately $10.1 million during the fiscal year ended June 30, 2014. The firm’s global investment management talent operates from its offices in Bahrain, Atlanta, London and Singapore.

The equity offering for a related Bahraini entity will be completed after obtaining certain regulatory approvals.

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ARCAPITA SELLS CARDIOMEMS FOR $450M

30 June 2014 - Arcapita, a global investment management firm headquartered in Bahrain, announced today that its Arcapita Ventures I fund has completed the sale of its portfolio company, CardioMEMS, Inc. CardioMEMS has been acquired by St. Jude Medical, Inc. (NYSE: STJ) a global medical device company headquartered in Minnesota, US St. Jude Medical had previously invested $60 million for a 19 percent shareholding of CardioMEMS and has now exercised its exclusive option to purchase the remaining 81 percent of the company, in a transaction valued in excess of $450 million.

CardioMEMS is a leading medical device company that develops implantable wireless sensors which gather and transmit pressure information from inside the human body. Recently, CardioMEMS has received US FDA (Food and Drug Administration) approval for its Heart Failure Management System.

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said, “We have supported CardioMEMS as a venture partner for several years and are pleased that the technology developed by the company is proving effective in the provision of higher standards of care for heart patients. We are also delighted with the very positive returns we have generated from our investment in the business, benefiting investors in the Arcapita Ventures I fund.”

John Huntz, Head of Arcapita Ventures and Chairman of CardioMEMS, added, “Jay Yadav, Founder and CEO of CardioMEMS and his team, not only came up with an innovative and revolutionary approach to treating heart failure but have spent the past 12 years making this a reality – it was my pleasure to work with a great team of people who constantly pushed the boundaries of medical innovation. Arcapita is proud to have been the lead investor in this ground-breaking technology which will provide invaluable support to millions of heart failure patients and reduce hospitalization rates in the US and around the world.”

Headquartered in Atlanta, Georgia, CardioMEMS is a medical device company that has developed and is commercializing proprietary wireless sensing and communication technology for the human body. Its technology platform is designed to improve the management of severe chronic cardiovascular diseases such as aneurysms, heart failure and hypertension. CardioMEMS’ miniature wireless sensors can be implanted using minimally-invasive techniques and transmit cardiac output, blood pressure and heart rate data which are critical to the management of patients. Other major investors in CardioMEMS include Boston Millennia Partners, Johnson & Johnson and Foundation Medical Partners.

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ARCAPITA EXITS VAREL INTERNATIONAL ENERGY SERVICES FOR $740M

3 February 2014 - Arcapita, a global investment management firm headquartered in Bahrain, announced today the signing of an agreement to sell Varel International Energy Services, Inc. (Varel), a leading manufacturer of drill bits for the oil and gas, and mining and industrial industries, to Sweden-based Sandvik AB for a total transaction value of approximately $740 million. The closing of the transaction is subject to standard regulatory approvals and certain environmental due diligence. It is likely that the sale will be finalized within in the first six months of 2014.

Headquartered in Texas, United States, Varel conducts business in over 60 countries through its operating divisions. The company employs over 1,300 personnel and has primary manufacturing and management facilities in the United States, Mexico, France, Scotland and Russia. In addition, the company has significant regional sales and service or research facilities in the United States, Canada, Peru, France, the UAE, Kazakhstan, Malaysia and Australia.

Kevin Keough, a Director at Arcapita said, "Since Arcapita’s acquisition of Varel in 2007, the company has continued to expand its product offering and global presence, maintaining its status as the largest independent and fastest growing drill bit company in the world. The management team, led by CEO Jim Nixon, and with the support of Arcapita and the company’s board of directors, has done an outstanding job of building a world-class organization that has created significant value for investors." Through a combination of organic growth and the acquisition of DHP, the company has grown sales significantly in six years.

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, added, “The Arcapita team worked closely with the management of Varel to develop and deliver a strategy that propelled the business to a market leadership position and we are delighted with this outcome. Arcapita continues to focus on maximizing value and delivering successful exits to its investors."

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ARCAPITA COMPLETES SALE OF 3PD, GENERATING POSITIVE RETURNS FOR INVESTORS

19 August 2013 - Arcapita Bank B.S.C.(c) announced today the sale of 3PD Holding, Inc. (“3PD”), a leading last-mile logistics company in the United States and Canada, for $365 million. 3PD was acquired by XPO Logistics Inc. (NYSE: XPO), one of the fastest growing transportation logistics companies serving North America. Arcapita acquired a majority stake in 3PD in 2006 as a growth asset that offered significant opportunity due to the fragmented and growing demand for last-mile services in North America. Following the acquisition, Arcapita provided investment capital to 3PD, and its portfolio managers worked closely with the founders and management of 3PD to develop and deliver a strategy that propelled the business to a market leadership position despite a weak economy.

Strategic initiatives undertaken to enhance value for investors included:
•Building 3PD’s strategy around the creation of a scalable, transactional business focused on ecommerce and small shippers to complement its existing core business dedicated to large retail clients;
•The acquisition of four leading companies to establish 3PD as the undisputed leader in last-mile heavy goods delivery; and
• The investment of significant capital to establish a best-in-class technology system.

Ransom James, a Director in Arcapita’s private equity team, said, "Our partnership with Karl, Randy and the rest of the 3PD team has been a great one. We jointly navigated the business through the recession, and never lost momentum in providing high-quality customer service or in building the transactional business. We grew profitability by over 70%, a testament to the stability and growth-oriented nature of this sector, of which 3PD is now the leader. The sale of 3PD to XPO is strategically the right step in the business’ development. As part of XPO, 3PD’s superb growth prospects will only be enhanced. We wish XPO and the 3PD team the best of luck."

Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, added, “Despite the challenges of the global recession faced early in the holding period, Arcapita’s private equity team worked effectively and creatively with 3PD management and its board of directors to enhance the performance and realize the potential of the company to the benefit of investors. This excellent outcome demonstrates Arcapita’s continued ability to deliver profitable exits, even under its current circumstances.”

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