JEDDAH, 16 May 2005 — Arcapita, a leading Bahrain-based investment bank, said yesterday it had sold DVT Corporation, a US-based manufacturing company, to Cognex Corporation for $115 million.
An Arcapita statement received here said the bank and its co-investors had acquired DVT, a manufacturer of machine vision systems, in 1999.
Arcapita’s Chief Executive Officer Atif Abdulmalik said: “For a transaction completed at the height of the technology investment boom of the late 1990s, we are extremely pleased to have completed the sale of DVT to a strategic buyer at a valuation which has generated total returns of 40 percent for our investors.”
He added: “DVT is our fourth corporate investment exit and represents our second exit within the last 18 months. Three of our corporate investments have been acquired for cash by publicly quoted companies in the US and the UK and we are exploring the possibility of taking one or more of our other portfolio companies public later this year.”
DVT is a leading manufacturer of machine vision systems, used worldwide in a variety of manufacturing industries including automotive, pharmaceutical, packaging, healthcare, electronics, and consumer products. DVT introduced the first smart camera in 1991 and continues to be an industry leader with the widest range of vision systems available.
With headquarters in Duluth, Georgia, the company has offices on four continents and counts among its customers many Fortune 500 companies.
David Crosland, executive director, corporate investment, said: “Under Arcapita’s stewardship, DVT has established a reputation for introducing new products and built up a great distribution network which has made it an attractive acquisition target for a recognized industry leader like Cognex.”
Last week Arcapita sold two of its real estate portfolios in the United States for about $300 million.
The two portfolios, comprising 11 apartment complexes, were acquired in 2000 through a joint venture between Arcapita and US Archstone-Smith at a cost of $240 million, a bank statement said.
It said the portfolios were sold to unidentified buyers in the United States.
Arcapita has completed 37 transactions so far with a total value of approximately $8 billion and has an equity capital base in excess of $300 million.
