Investcorp has made two huge investments. One was in Paper Source, which is a United States retailer. The other was in the well-known car hire company Theeb Rent a Car. Investcorp is based in Bahrain, and this move marks its huge push into the car rental industry.
So far, no financial details have been disclosed to the public. That being said, experts assume that Investcorp paid a good deal of money to buy such a huge chunk of the car rental company. Despite this, experts in the car rental industry did not even want to venture a guess as to how much money this cost.
Due to the amount of money that was invested in the company, Investcorp will now play a huge role in the operations of Theeb Rent a Car. This includes making key decisions for the company as a whole. For example, Investcorp will not only help with the governance of the company but also with future exit strategies as well.
Theeb Rent a Car has been around for a long time. In fact, this car rental giant was first founded in 1991 by Mohammed Al Theeb and Homod Al Theeb. At the time of the huge investment made by Investcorp, Theeb Rent a Car had just over 900 employees. The company also has a fleet of cars that totals over 10,000.
Currently, Theeb Rent a Car is the second largest car hire company in all of Saudi Arabia. This company has become extremely popular with tourists who visit the area. According to Mohammed Al Theeb, the company currently holds 15 percent of the total car hire market in Saudi Arabia.
Mohammed Al Theeb went on to tell the media this week that he hopes that his company will continue to grow in the coming years. The hope is that Theeb Rent a Car will see double-digit growth within the next five years. This is something that Theeb Rent a Car should be able to achieve with the active support of Investcorp. The company strongly believes that it is in a good position to acquire more market shares in the company years.
If Theeb Rent a Car continues on the path that it is currently on, this kind of growth is not out of the question. In fact, during the past three years or so, Theeb Rent a Car has seen its net income and revenue increase by 17 percent. This is huge considering that this growth came during the recession, when other car rental companies were losing revenue.
When speaking about this investment made by Investcorp, Mohammed Al Shroogi said that Theeb Rent a Car is a very well-respected family business. It has a chance to grow into one of the leading car rental companies in all of Saudi Arabia. Theeb Rent a Car will work closely with Investcorp to ensure the success of this company. Overall, the company believes that Investcorp will be able to assist it in becoming number one in this sector.