AmCan is the exclusive distributor of many of the top global sports nutrition brands across the MENA region, to a leading regional FMCG distributor operating across the Middle East and Africa.

This highly profitable and strategic sale comes on the heel of another successful exit of a food distribution firm, Chef Middle East (“Chef ME”), the GCC’s premier foodservice distribution business, which was sold to The Chefs’ Warehouse, a Nasdaq-listed specialty food distributor operating across North America.

As a thematic investor, Gulf Capital invested in AmCan in 2016 from its third buyout fund, GC Equity Partners III, to gain exposure to the fast-growing wellness and sports and nutrition supplements market in the GCC.

The global sports nutrition market grew from $35.95 billion in 2022 to $39.56 billion in 2023 at a compound annual growth rate (CAGR) of 10.1% according to Research and Markets. The market is expected to grow to $58.29 billion in 2027 at a CAGR of 10.2%.

The sports nutrition industry in the Gulf is expected to continue growing at an expected 20%, twice the global average growth rate.

Drivers of this double-digit growth include increasing demographics, rapid urbanisation, high online connectivity, high disposable income, growing health awareness among consumers, and introduction of new ingredients in sports nutrition products, and a growing trend for adopting a healthier lifestyle.

During Gulf Capital’s ownership, AmCan grew its revenues and gross margin by more than 50%.

To achieve these strong results, AmCan expanded geographically by leveraging its exclusive regional agencies, deepened its market reach by investing in operating processes and tools and strengthened its distribution model with optimised working capital and enhanced trading terms.

Moreover, AmCan capitalised on its superior knowledge and understanding of its customers’ behaviours to introduce new brands and products that are witnessing exponential sales growth.

This remarkable performance is a strong testament to the operational improvement capabilities at Gulf Capital and its deep bench of operating partners and industry advisors.

Dr. Karim El Solh, Co-Founder and CEO of Gulf Capital, said:

“As a thematic investor, our investment in AmCan was underpinned by the secular trends and shifts in consumer behaviour that continue to fuel the growth of the health and wellness sector across the Middle East. The disciplined execution of our value creation plan by AmCan’s management team and Gulf Capital’s operating partners have allowed AmCan to cement and expand its market leading position in the region with continued improvement of its operating metrics and overall profitability. We are very proud of the remarkable growth of AmCan during Gulf Capital’s ownership period and of the strong returns we have delivered to our Third Buyout Fund investors. This control growth buyout with a deep focus on operational improvement and earnings’ growth, followed by a highly successful sale to a regional strategic buyer, is a great illustration of Gulf Capital’s unique investment strategy in our high growth region.”

Mohammad Madani, Managing Director at Gulf Capital, said:

“The AmCan investment is another great example of Gulf Capital’s strategy of acquiring controlling stakes in a market leader in a high growth sector, expanding the business into new geographies, enlarging product offering, and growing EBITDA through operational improvements. We are thrilled with the successful closing of this sale to a regional strategic buyer, as we believe AmCan will find in its new owner the financial support, operational expertise, and depth of network that will take it to new heights. We would like to thank our esteemed partner over the years, Firas Odeh, AmCan’s Founder and CEO, AmCan’s management team, and the new owner for their efforts in successfully closing this transaction, and we wish them all the best on their next chapter of growth.”

Gulf Capital was advised by Global Gate Capital, Eversheds Sutherland and PwC on this strategic sale. The buyer was advised by Nucleus Consulting and Ashurst.

Gulf Capital and AfricInvest had invested around US$50 million in iSON to accelerate the company’s growth.

During the partnership period with Gulf Capital, iSON completed three bolt-on acquisitions that allowed the company to expand its geographic coverage across Africa including Egypt and South Africa, in addition to expanding its product offering and capabilities. iSON also strategically diversified its customer base and industry exposure.

As a result, it grew its revenues by circa 60%, and now generates around 50% of its revenues from new countries of operations since Gulf Capital’s initial investment and backing.

Founded in 2010 as a single-country, single-sector BPO provider, iSON currently operates across 19 countries, driven by a workforce of over 18,000 employees, conducting over 50 million customer transactions per month, for more than 500 million customers globally.

Christopher Foll, Senior Managing Director at Gulf Capital, said:

“Our investment in iSON was driven by its market leading position in Africa, representing 75% of the customer service market share in the telecoms industry across Sub-Saharan Africa. This is in addition to the solid and sustainable cashflow profile of the business and the exceptional management team. We are pleased with the impressive growth iSON has reported over the years and are optimistic about its future growth prospects. Our investment in iSON allowed us to achieve superior risk-adjusted returns for our investors over our five-year holding period. We wish the company and our partners all the best in their new chapter of growth.”

Pravin Kumar, Global CEO of iSON Xperiences, said:

“We extend our deepest appreciation to Gulf Capital for its proactive support to us and trust in our mission. Its investment has been the catalyst for our remarkable journey, empowering us to expand our horizons, diversify our offerings, and solidify our presence in the industry. Gulf Capital’s commitment has not only been financial but a resounding endorsement of our potential. As we conclude this chapter, we do so with gratitude, confidence, and a sense of achievement. Gulf Capital has been an instrumental partner in our success story, and we look forward to the future with optimism, carrying forward the lessons learned and experiences shared.”

Majd Khodr, Executive Director at Gulf Capital, added: “Over the past five years, with Gulf Capital’s backing, iSON organically and inorganically expanded its operations to 19 countries in Africa and India and entered into new service offerings that not only grew the company’s operations but also reduced its risk profile, creating value for current and future shareholders.

The advanced data-driven solutions and customer-centric approach ensure the company’s resilience and supports its growth in an ever-changing industry. With over 18,000 employees, we are proud of the impact the company has on the lives of thousands of families across 19 developing economies.

We are confident of iSON’s bright prospects supported by a world-class management team and highly reputable institutional investors. We wish iSON Xperiences all the best on their next phase of growth.”