HBG Holdings acquires 10.9% stake in Northbridge

Dubai: HBG Holdings, a UK-regulated private equity firm with a presence in Dubai, said yesterday it acquired a strategic stake in Northbridge Industrial Services.

A firm listed on the AIM market of the London Stock Exchange, Northbridge supplies specialised industrial equipment to the oil and gas industry, major utilities and the public sector across Europe, US, Central Asia, Middle East and the Far East.

HBG holds a 10.9 per cent share in Northbridge invested at 125p per share. Northbridge's closing price on Thursday was 154p.

The investment by HBG coincides with Northbridge's acquisition of Australia based Tasman Oil Tools, the latest in a series of acquisitions by the company to pursue its strategy of acquiring earnings-enhancing specialist businesses, HBG said in a statement.

Tasman specialises in industrial equipment rental for the onshore and off-shore oil industry throughout Australia and will increase the size of Northbridge and broaden its presence in the Asia Pacific region. The co-investors in the deal include New York based Blackrock and London based Artemis.

"We are now one of the largest shareholders of Northbridge and plan to expand it rapidly in Saudi Arabia and the Middle East in close collaboration with regional strategic partners," HBG Chairman Abdullah Y. Al Muallimi said.

HBG did not disclose the size or value of its stake, which it acquired through HBG Small Cap SPV 1, a subsidiary of its Shariah Small Cap Fund I.

Northbridge has operations in the Middle East where the company is expecting to work with HBG to further expand its business.

"Saudi Arabia and the Middle East are huge opportunities for Northbridge and given our strong footprint and capability in the region we look forward to playing our full part in supporting the company's regional expansion," Al Muallimi said.

Zulfi K. Hydari, Group Managing Director of HBG Holdings, said: "This investment demonstrates our ability to work closely with a target company in supporting its expansion efforts. There are other such deals in our pipeline so you can expect more deals to follow."