(MENAFN- The Arabian Post)

Investcorp Capital, a prominent Abu Dhabi-listed alternative investments firm, has acquired the US-based Kanawha Scales & Systems, marking a strategic move to broaden its services sector portfolio. The acquisition, which was arranged by Investcorp, comes at a time when the company looks to strengthen its presence in the industrial services space.

Although the financial details of the deal have not been disclosed, ICAP has highlighted the significance of this acquisition in expanding its investments into the services sector. KSS, which specializes in providing weighing solutions and systems, will continue its operations under the leadership of its existing management team. These executives are expected to retain a stake in the company, alongside Investcorp's investor base, ensuring continuity in the firm's operations and business strategy.

Kanawha Scales & Systems, headquartered in the US, has established itself as a leader in the design, manufacture, and service of weighing equipment and systems, catering primarily to industries such as transportation, mining, and logistics. KSS provides critical equipment and services for heavy industries, ensuring the efficient measurement of bulk materials and commodities. The acquisition aligns with Investcorp's long-term investment strategy of targeting firms with strong market positions in niche service sectors.

The deal is also seen as a reflection of Investcorp's strategy to diversify its portfolio by integrating companies with a proven track record and high potential for growth. By focusing on mid-market acquisitions, ICAP has consistently invested in businesses that demonstrate both stability and the capacity to innovate. This approach aims to generate strong returns for its investors while expanding the company's influence across diverse sectors.

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Investcorp's investment strategy has been evolving, with the firm increasingly targeting businesses with solid service-oriented foundations. This acquisition follows a broader trend within the private equity and alternative investment markets, where firms are increasingly eyeing service-based companies due to their resilience and recurring revenue potential. The emphasis on services, as opposed to traditional manufacturing or commodity-driven investments, reflects a shifting focus towards long-term, sustainable business models that can weather economic fluctuations.

The partnership between ICAP and the KSS management team is expected to create additional growth opportunities for the company. As part of the acquisition, the KSS leadership team will remain actively involved in decision-making processes, ensuring that their expertise and knowledge of the business and its clients continue to drive the company forward. This collaborative approach is intended to foster a smooth integration process and maintain operational excellence.

Investcorp's continued investment in North America, particularly in sectors related to industrial services, demonstrates the firm's commitment to strengthening its position in key markets. The firm's strategic acquisitions in the US market have proven beneficial in expanding its reach and building a more diversified portfolio. The KSS acquisition follows a series of successful investments in the region, showcasing Investcorp's confidence in the potential of service-based businesses in the industrial sector.

As the deal progresses, it is expected that KSS will benefit from Investcorp's extensive resources and expertise in scaling businesses globally. With Investcorp's backing, KSS can leverage its existing market position to expand its service offerings and pursue new business opportunities. The transaction highlights Investcorp's ability to identify and capitalize on high-value opportunities that align with its investment philosophy.

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