100% Sale of Electrical and Lighting Company in Kuwait. 4 million KWD Turnover. Good Profitability. Fully debt free Company. Available for 100% sale.

1. KuwaitiElectricalandLighting
SolutionCompany
2017
InvestmentOpportunity
Buyout
1005 Buyout / Acquisition Opportunity for Electrical and Lighting Company in Kuwait is
available. It has turnover of 4million KWD. The company is Profit making and Debt Free
Company.
Venture Art
Fahad Al Salem Street Kuwait City Kuwait
+96567086552
[Type the fax number]

2. A
Sale of 100% Stake of a General Electric Company Trading and operating in Supplying Electrical Lightings Solutions.
Opportunity
 Investment into the (“Target” or the “Company”), an established and growing Kuwaiti company engaged in the electrical
lighting business offering and supplying a wide range of electrical lighting products across Kuwait.
 Opportunity to acquire 80% to 100% stake in the Target from existing partners.
 Founded in May 1983 as a limited liability company, and the Company’s paid up capital amounted to KD 1 million as of 31st
December 2015.
 Target is a genuine supplier (no copies or fakes) of lighting electrical products based in Kuwait with sales turnover of around
KD 4 million as on 31st December 2015 growing at about 6.53% CAGR over the last 5 years 2011-2015.
 An exclusive distributor of a key brand lighting products (one of the top 2 brands worldwide ) in Kuwait and authorized
distributor of other major lighting brands.
 The Company’s revenues growth and sources are diversified across projects for both governmental bodies and private sector
(corporate & individuals). The Target has been able to increase its market share during 1991-2006 while maintaining its
positioning during 2006- 2015.
 The Company is competitive with a highly experienced team spearheaded by a CEO, who’s at the same time one of the
Company’s partners.
 Target has a clear and viable strategic planning for growth over the next 3-5 years that considers establishing a factory in
Kuwait to manufacture its own line of electrical lighting products, for which Target has already obtained a license start and has
to work on the Land to start the process.

3. Financial Information
Total Assets 2015*: ~ KD 2.50 million / Total Revenues 2015*: ~ KD 3.97 million
Sales Growth (2011–2015*): 6.53% CAGR / Average ROE (2011 – 2015*): 16.08%
Average NPM (2011 – 2015*): 7.05%
Income Statement (KD 000) 2011 % 2012 % 2013 % 2014 % 2015* %
Sales 3,079.6 100% 4,005.5 100% 3,133.9 100% 4,630.5 100% 3,966.9 100%
Cost of sales 2,359.0 77% 3,104.2 77% 2,313.1 74% 3,632.6 78% 3,034.6 77%
Gross profit 720.6 23% 901.2 23% 820.7 26% 997.9 22% 932.2 23%
Expenses 458.7 15% 589.9 15% 575.2 18% 600.9 13% 537.1 14%
EBIT 261.9 9% 311.4 8% 245.6 8% 397.1 9% 395.1 10%
Finance charges 40.8 1% 52.5 1% 64.8 2% 87.3 2% 46.9 1%
Gain from sale of FFE - 0% 6.9 0% 0.4 0% - 0% 7.2 0%
Net Profit (before Non-Operating
Items)
221.2 7% 265.8 7% 181.1 6% 309.8 7% 355.5 9%
Non-Operating Loss** - - - - - - - - 288.6 7%
Net Profit/(loss) after Non-Operating
Extraordinary Items
221.2 7% 265.8 7% 181.1 6% 309.8 7% 66.9 2%
2015 – Due to a fire there was a significant non-operating loss which has affected the profit of the year 2016.
Balance Sheet - Dec.31st (KD ‘000) 2011 % 2012 % 2013 % 2014 % 2015* %
Assets
Current assets 2,465.6 98% 3,032.6 99% 3,567.0 99% 3,340.7 99% 2,446.4 98%
Non-current assets 37.9 2% 46.2 1% 48.8 1% 36.4 1% 51.5 2%
Total assets 2,503.5 100% 3,078.8 100% 3,615.8 100% 3,377.1 100% 2,497.9 100%
Liabilities and Equity
Current liabilities 1,080.0 43% 1,593.2 52% 1,975.0 55% 1,413.6 42% 557.1 22%
Non current liabilities 62.0 2% 18.8 1% 26.5 1% 35.5 1% 42.7 2%
Total liabilities 1,142.0 46% 1,612.0 52% 2,001.6 55% 1,449.1 43% 599.8 24%
Owners’ Equity 1,361.5 54% 1,466.8 48% 1,614.2 45% 1,928.0 57% 1,898.1 76%
Total liabilities and equity 2,503.5 100% 3,078.8 100% 3,615.8 100% 3,377.1 100% 2,497.9 100%

4. Strengths
 Highly competitive and experienced team (of 36, 24 & 20 years experience) and CEO is one of partners.
 Exclusive distributor for grade A lighting products in Kuwait, top two brand leaders in the world.
 Having a license to build its own lamp factory in Kuwait.
 Dealing with an extensive list of worldwide lighting manufacturers and Dependable and reliable supply of genuine
electrical lighting products (no copies & fakes) & Competitive market player: Increased market share in 1991-2006 and
maintained positioning during 2006 -2015.
 Efficient capital structure: Higher equity level with short term leveraging (D/E 60% in 2014 and 35% in 2015) and Higher
sales growth of 10% compared with its peers of 4%.
 Consistent profitability: Higher NPM and ROE of 7% and 17% than its peers at 4.6% and 9%, respectively during 2010-
2014. More efficient in managing G&A expenses than its peers with no material legal
Opportunities
 Kuwait still maintains budget surplus, with stable economic growth pace and inflation is expected to remain under control.
 Kuwait 2nd government’s 5 year plan FY15/16-FY19/20 targets investments of KD 11.8 billion a year over 5 year period.
 Private credit growth picking up gradually.
 Higher demand for sustainable and energy saving lighting promoted by government energy-savings regulations
 LED lighting market is expected to replace traditional lightings to reach 60% of total market by 2020.
 Globally, general lighting sector is expected to grow at 45% during 2011-2016 and 15% for 2016-2020.
 Kuwait is ranked 4th in GCC at US$390 billion worth of construction related
Weaknesses
 Clarity and transparency in doing business(no fake products)
 Weaker distribution network than competitors
 Relatively late sales payment receivables
 Low in fixed capital assets; however, intensive inventory assets investments.
Threats

5.  Kuwait’s surplus is relatively narrowing due to lower oil prices and government spending is reduced.
 Regional turmoil and conflicts particularly in Syria, Iraq and Yemen.
 Cheaper Chinese or counterfeit substitute products.& Intensive competition
 Exchange rate fluctuations.
Projected Financials for the Target for the period of 2015 – 2019.
Projected Income Statement (2015-2019) Income Statement
(KD)
2015P 2016P 2017P 2018P 2019P
Sales 4,250,000 4,528,000 4,783,203 5,120,000 5,609,000
Cost of Goods Sold (COGS) 3,346,875 3,578,862 3,777,081 4,048,000 4,431,900
Gross Profits 903,125 949,138 1,006,122 1,072,000 1,177,100
Expenses
General and administrative expenses 305,519 307,114 323,866 337,319 338,319
Staff Costs 208,542 214,798 222,316 231,209 240,457
Depreciation 14,025 14,473 14,694 15,870 18,200
Provision for doubtful debts 5,000 10,000 15,000 15,000 20,000
Provision for slow moving & obsolete
stock
5,000 5,000 5,000 5,000 5,000
Total Expenses 538,086 551,385 580,876 604,398 621,976
EBIT 365,039 395,294 425,246 467,602 555,124
Finance charges 45,101 66,861 70,629 75,602 82,823
Gain/(Loss) from sale of FFE 1,200 - - - -
Net Profits (before Non-Operating
Extraordinary Items)
321,138 330,892 354,617 392,000 472,301
Non-Operating Extraordinary Loss
(burnt Inventory in fire)
(288,617) - - - -
Net Profits After Non-Operating
Extraordinary Items
32,521 330,892 354,617 392,000 472,301