Arcapita

Arcapita, Inc.

Type	Holding company
Founded	1997[1]
Founder	First Islamic Investment Bank (now Arcapita Bank)
Headquarters	Atlanta, Georgia, United States
Key people	Atif A. Abdulmalik, CEO Stockton Croft, Executive Director
Net income	US$285.7 million (Arcapita Bank)[2]
Number of employees	253 (Arcapita Bank)[2]
Parent	Arcapita Bank

Arcapita, Inc. (formerly known as Crescent Investments, Inc.) is a Delaware-incorporated holding and real estate company, headquartered in Atlanta, Georgia. The company is wholly owned by the Bahrain-based Arcapita Bank, formed in 1996 as the First Islamic Investment Bank. Arcapita Bank has offices in Bahrain, Atlanta, London, and Singapore.^[3]

The company buys American companies for between $200 million and $1 billion, and sells them four to six years later.^[4][5]

Recent news

In January 2014, Arcapita sold its firm U.S.-based Varel International to Swedish engineering firm Sandvik for a total of $740 million.^[6]

Bankruptcy

Arcapita filed for bankruptcy in March 2012.^[7]

Name change

On March 15, 2005, parent company First Islamic Investment Bank and its subsidiaries changed their name to Arcapita and adopted a new logo.^[8] The name "Arcapita" is a combination of the words "arc" and "capital", "arc" symbolizing the company's global span, from Atlanta to London to Bahrain. The firm indicated that its name change did not relate to potential anti-Islam sentiments in the regions in which it was operating.^[9]

The name change resulted in some controversy as to whether it was done to hide the company's Middle Eastern roots. According to the company, the unified name was introduced to avoid confusion about the relationships between the parent company, First Islamic Investment Bank, and its subsidiaries, Crescent Capital in the U.S. and Crescent Capital (Europe) Ltd., based in London. The company also wanted to reassure investors who were uneasy about the perceived religious association of the old name.^[5]

September 11 boycott

In response to the September 11th terrorist attacks, a boycott was initiated against the coffee chain Caribou Coffee, which Crescent Capital had acquired in 2000. According to Fred Taub, president of Cleveland-based Boycott Watch, some people objected to Muslim ownership of the U.S.-based coffee chain.^[5] However, the boycott did not have a significant effect on the growth of the chain, which grew from 175 stores in 2001 to more than 400 in 2006.^[5]

Compliance with Sharia

Every investment made by Arcapita Bank and its subsidiary corporations is approved by a four-member Sharia advisory board. The board includes a retired judge from Saudi Arabia's Supreme Court, and religious scholars from Pakistan and Bahrain. In accordance with Islamic Sharia law, the company does not invest in any businesses which offer credit or charge interest, or sell pornography, alcohol, or pork products.^[5]

According to representatives of the company, the Sharia advisory board does not make decisions about the financial merits of investments, and does not play a role in hiring or promotion of employees.^[5]

Subsidiaries

Arcapita's holdings include:^[5]

• Bijoux Terner – fashion retailer and supplier of handbags, jewelry, watches, and other goods to airports, hotels, cruise ships, and entertainment venues, based in Miami, Florida^[10]
• Compagnie Européenne de Prestations Logistiques (CEPL) – contract logistics company based in Béville-le-Comte, France^[11]
• Cypress Communications – small-business telecommunications provider, based in Atlanta, Georgia^[12]
• Falcon Gas Storage – largest US-based independently owned operator of high-deliverability, multi-cycle (HDMC) natural gas storage capacity, based in Houston, Texas^[13]
• Church Street Health Management (formerly FORBA Holding, LLC) – dental practice management company that operates Small Smiles Dental Centers^[14]
• Freightliner – rail logistics company, based in London^[15]
• Jill Acquisitions – multi-chain retailer of women’s apparel, accessories and footwear under the names J. Jill, Essentials and Core based in Quincy, Massachusetts^[16]
• Meridian Surgical Partners – owns and operates ambulatory surgery centers in partnership with physicians throughout the United States, based in Nashville, Tennessee^[17]
• PODS – moving and storage company based in Clearwater, Florida^[18]
• Tensar – site developer and provider of transportation infrastructure services, based in Atlanta^[19]
• Transportation Safety Technologies – manufactures specialty electrical components and safety products for vehicles, based in Indianapolis, Indiana^[20]
• Vogica – retailer and wholesaler of kitchens and bathrooms, based in Paris, France
• Working Rx – manages workers' compensation claims for retail pharmacies, based in Salt Lake City, Utah^[21]
• Yakima Products – manufacturer of sport racks and accessories for cars, based in Beaverton, Oregon^[22]

Former investments

• Southland Log Homes – a log home manufacturer, based in Irmo, South Carolina^[23]
• 3PD, Inc. – national provider of in-home delivery services based in Marietta, Georgia^[24] Sold to XPO Logistics on August 16, 2013.^[25]
• Ampad – supplier of paper office products, based in Richardson, Texas
• Church's Chicken – fast-food restaurant franchise, based in Atlanta, Georgia, sold to Friedman Fleischer & Lowe on August 10, 2009^[26]
• Roxar – manages reservoir problems in the oil and gas industries, based in Stavanger, Norway. Arcapita announced the signing of a definitive agreement to sell Roxar AS for approximately $370 million to CorrOcean ASA in 2007^[27]
• Tender Loving Care Health Care Services – home health care and hospice provider, based in Lake Success, New York. In March 2008 TLC was purchased from Arcapita and its co-investors by Amedisys, Inc.^[28][29]

References

External links

• Official website