Drake & Scull takes over Kuwait MEP firm
Dubai, December 26, 2009
Drake & Scull International (DSI) said it has acquired the Kuwait-based electrical contracting division of the company, jointly owned by Drake & Scull Group and Kuwait Holding Company.
With this acquisition, DSI will own 75 per cent of DSI for Electrical Contracting, a leading player in mechanical, electrical and plumbing (MEP) contracting industry.
The acquisition was recently approved by the board of directors of DSI, a company statement said.
This second acquisition since the listing of DSI on the Dubai Financial Market (DFM) in March follows a stringent technical, financial and legal process that was carried out by PricewaterhouseCoopers, Shuaa Capital and Al Tamimi & Company.
It is also in step with DSI’s declaration since its IPO that the company would actively pursue acquisition negotiations in Kuwait, Qatar and Saudi Arabia.
In November, DSI acquired 82 per cent of Passavant-Roediger – a global specialist in wastewater and sludge treatment with operations across 13 countries.
Majid Al Ghurair, chairman of DSI, said this acquisition is seen as logical and integral steps in the company’s development and the execution of its long-term strategy to expand geographically into the Mena region.
“This acquisition is in line with the growth strategy we shared with shareholders in our prospectus and which we have been actively pursuing since our listing on the DFM in March this year,” said Al Ghurair.
“We see great potential in the Kuwait market, which hasn’t been critically affected by the global financial crisis,” he added.
Khaldoun Tabari, DSI vice chairman and chief executive officer, said: “Our interest lies in acquiring companies that already have prominence in their own markets and an in-depth understanding of how their markets operate.” – TradeArabia News Service