January 4th, 2012
NBK Capital (the “Firm”) announced today that it has completed an investment in Dem Pharmaceutical (“Dem” or the “Company”), a niche pharmaceutical company specializing in biological drugs that treat life-threatening conditions. The investment was made through the Firm’s pioneering NBK Capital Mezzanine Fund, the MENA region’s first fund dedicated to providing alternative financing solutions to growth companies.
Established in 1993, Dem is a Turkey-based importer and marketer of niche drugs including blood products, hospital antibiotics, hematology and oncology drugs that treat life-threatening condition. The Company has grown significantly over the past five years adding several critical drugs to its portfolio. Furthermore, the Company continues to maintain a focused growth strategy with emphasis on portfolio expansion in vital niche segments that benefit from favorable market and regulatory conditions. The mezzanine facility will support Dem’s expansion plans and help the Company solidify its leading position.
Mr. Deniz Demir, General Manager and Chairman of the Board at Dem elaborated on this point, “the funds will finance the expansion of the Company’s sales and marketing capabilities and addition of new drug licenses. In addition, we are very pleased to be partnering with a reputable institutional investor who has the capability to help us grow and develop.”
Amjad Ahmad, Senior Managing Director at NBK Capital said, “we invested in Dem because of the Company’s focused strategy and strong track record in acquiring and delivering niche products in a growing industry. We wanted to provide the necessary capital to allow the Company to execute on its growth initiatives.”
Ahmet Tataroglu, Executive Director continued, “the impressive track record of the management team and their willingness to implement key initiatives provided the right platform for our investment.”
NBK Capital Mezzanine Fund I, managed by NBK Capital as part of its Alternative Investments Group, is a USD 157.0 million fund providing mezzanine financing to companies in the MENA region. Mezzanine financing is relevant for a variety of transactions including leveraged buyouts, refinancing, recapitalization, growth and acquisition financing. The Fund provides mezzanine financing for private equity-backed transactions as well as mid-market companies.
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About NBK Capital
NBK Capital was established in July 2005 as a subsidiary of the National Bank of Kuwait (NBK), one of the region’s oldest and highest rated banks. NBK Capital focuses on four principal lines of business: Alternative Investments, Asset Management, Brokerage & Research and Investment Banking. With offices in Kuwait, Dubai, Istanbul and Cairo, NBK Capital’s team of more than 170 professionals offer superior products and services to clients and investors.
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