(MENAFN) Bahrain-based private equity firm Investcorp has agreed to buy a 35 percent stake in Kuwait's Automak Automotive Company, an independent vehicle leasing and rental company, Saudi Gazette reported.
Mohammed Al Shroogi, Investcorp's President, Gulf Business, said that the recent investment is the second in Kuwait and the sixth in the GCC region.
Investcorp is looking to tap into the growing vehicle rental and leasing sector in the GCC, 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 favorable 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.
Automak was founded in 2002 by Al Kharafi Projects Co. W.L.L. and Ghazi Omar, with over 15 percent 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.