Investcorp offloads Icopal in €1bn trade sale

The sale of the Danish roofing business comes as the firm embarks on a strategy to grow its AUM by more than 100% in the next five years.

Bahrain-listed Investcorp has offloaded its investment in Icopal to North American roofing manufacturer GAF in a deal valuing the business at around €1 billion.

The sale of the roofing material manufacturer, which Investcorp acquired from a consortium led by Danish private equity firm Axcel in 2007 for €850 million, is subject to regulatory approval.

Icopal operates 36 manufacturing facilities in Europe and North America, and has a “significant and growing presence” in synthetic and liquid roofing products. The company distributes its products worldwide through 88 sales offices.

Under Investcorp’s ownership, Icopal has grown through several strategic add-on acquisitions and brownfield investments in Western and Eastern Europe, which have strengthened the company’s reach and operational capabilities.

The acquisition will significantly expand GAF’s presence in Europe, and the combined company will have close to $4 billion in sales across more than 80 countries, employing 6,500 people, according to a statement from GAF.

The sale comes a day after the firm acquired a minority stake in Bindawood Holding, one of Saudi Arabia’s leading supermarket and hypermarket groups. Bindawood is Investcorp’s sixth portfolio company in Saudi Arabia, following its acquisition of a majority stake in NDT Corrosion Control Services, the country’s largest industrial testing services company, last July. Other investments in Saudi Arabia include car rental business Theeb, Al Yusr Industrial Contracting Company, gold jewellery designer, manufacturer and distributor L’azurde, and Leejam, the owner and operator of fitness chain Fitness Time.

Last July Mohammed Al Ardhi took on the role of executive chairman as part of Investcorp’s succession plan following Nemir Kirdar’s decision to retire as executive chairman and chief executive officer. Mohammed Al-Shroogi, formerly President of Investcorp’s Gulf business, and Rishi Kapoor, formerly Investcorp’s chief financial officer, were appointed co-CEOs. Kirdar became chairman of the firm’s board of directors in April 2015.

In November Al Ardhi set out his strategy for growth at Investcorp, which includes plans to more than double the firm’s $10.6 billion of assets under management in five years. 

“In order for Investcorp to reach its ambitious targets, our priority is to add carefully selected services under the umbrella of our brand while striking the best balance between minimising risk and growing profit,” Al Ardhi said in a statement at the time.

Investcorp will look to develop its product set to enable its investors to access new alternative investment opportunities and therefore construct diversified portfolios across multiple markets. This includes the acquisition in November of the hedge funds of funds business unit of SSARIS Advisors, bringing with it around $800 million in discretionary and advisory assets and clients across the US, Europe and Asia.

On the private equity side, Investcorp is looking to increase its average equity cheque size from around $150 million to around $300 million.

The firm will also be looking to attract investors from outside the Gulf region for the first time, although it will maintain a focus on its existing Gulf-based investors.

Realisation proceeds and other distributions to Investcorp and its clients for the fiscal year ending 30 June 2015 exceeded $1.5 billion, taking total proceeds over the past three years to $5 billion. Net income for the period reached $116.7 million, up 13 percent on the 2014 fiscal year.