StanChart unit invests $75m in Saudi CPC
Riyadh, August 8, 2011
Standard Chartered Private Equity (SCPE) has acquired a minority stake in Construction Products Holding Company (CPC) through an equity investment of $75 million.
CPC is Saudi Arabia’s largest manufacturer and provider of building materials and a subsidiary of the Saudi Bin Laden Group (SBG).
CPC, with over 30 world class manufacturing facilities, provides up to 80 per cent of the building materials required for mega construction projects throughout Saudi Arabia and will use the proceeds for expansion purposes, said a statement.
SCPE will be granted a board seat and will provide strategic insight on CPC’s capital structure and expansion into new markets, it said.
This is the first investment in Saudi Arabia for SCPE. Standard Chartered Private Equity is committed to investing in successful Saudi businesses and is actively seeking opportunities across the Kingdom and the rest of the Middle East, it said.
SCPE invests in companies across sectors with proven cash flows, backed by best in class management teams in flexible private equity or mezzanine structures.
Taimoor Labib, managing director and regional head of Mena private equity at SCPE, said: 'CPC is an exemplary blue chip company and we are delighted that they have chosen us as their long-term partner. They enjoy a dominant market share in the Saudi Arabian building materials construction market and are led by one of the strongest management teams in the Kingdom.
'The company has a long track record of growth and returns to shareholders and is well positioned to continue to be the leader in the Saudi Arabian market and also achieve its regional growth plans,” he said.
Mu’taz Sawwaf, CEO, CPC, said: “The Saudi Bin Laden Group is excited about its new partnership with Standard Chartered Bank and its top notch Private Equity group. CPC, as the backbone of the Saudi Bin Laden Group, is the largest integrated supplier of building materials in the Kingdom of Saudi Arabia and the Middle East. We look forward to SCPE’s partnership as we experience robust growth in our existing footprint and in new markets.” - TradeArabia News Service
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