Swicorp has acquired a “strategic stake” in Petroser, an Algerian distributor of fuel and related products.
Petroser, established in 1999, has a network of petrol stations and a storage and logistics platform. The company has an exclusive agreement with global energy group BP to distribute BP lubricants across Algeria.
The investment, which was made out of the Intaj Capital Fund, will allow the company to expand into new lines of business. Petroser intends to establish a new lubricant blending facility to manufacture products under the BP license, and a bitumen storage and blending unit to manufacture bitumen derivatives.
Algeria is among the most promising growth markets in the MENA region, said Swicorp managing director and head of private equity Nabil Triki. Economic growth and infrastructure development have led to rapidly increasing demand for fuel products, and there is currently insufficient supply, the firm said.
Intaj Capital Fund is a $250 million MENA-focused vehicle that makes investments in sectors driven by a growth in consumer demand. Focus sectors include consumer goods, retail, communications, financial services and construction materials.
The fund makes growth capital investments and invests selectively in buyouts. It has made ten investments so far. Most recently, the firm last month acquired a minority stake in Jordan Aviation, an aviation leasing company, in a deal that was reported to be worth more than $150 million.
Founded in 1987, Swicorp manages assets of more than $1.5 billion.