(MENAFN- The Peninsula) First Equity Partners (FEP), a Mena private equity firm, alongside a group of strategic partners has announced the acquisition of Oryx Industries, a leading Fujairah-based producer of building materials. FEP and the strategic partners have collectively committed a grand total of AED500m to the venture as of end of December 2014. The initial acquisition of a 50 percent stake will be followed by a full acquisition by the end of the first quarter of 2015.
The consortium of investors who have joined forces with FEP to execute this acquisition include State Holding (Qatar), Sheikh Abdulla Al Sharqi (Chairman of Oryx Industries), Rawabi Holding (KSA) and Al Waab Real Estate (Kuwait).
The acquisition supports the ambitious expansion plan of the construction materials producer, which has delivered robust growth in the recent past. It also capitalizes on the GCC construction boom, driven by significant investment in large-scale real estate and infrastructure projects, such as the Dubai World Expo 2020 and Qatar World Cup 2022. This is set to boost the demand for imports of construction materials in coming years.
Qais Al Maskati, Managing Director and CEO of FEP, referred to the acquisition as "a timely investment with strong up-side potential". He continued to discuss his future optimism regarding the new agreement saying "FEP is proud to play an integral role in the future of Oryx Industries - a uniquely positioned organisation that is set to benefit from the increasing demand for basic building materials in the construction sector. FEP is able to identify first-rate opportunities and Oryx Industries is no exception. As a regional industry leader in the areas of aggregate production, trading and bulk transport and logistic services; Oryx Industries is expected to play a vital role in many of the large-scale GCC real estate and infrastructure projects in the coming years."
Oryx Industries is a regional industry leader in the production of aggregates and ready-mix. It holds a 50 percent share of the ready mix concrete market in Fujairah and a 20 percent share of Fujairah's aggregate export market. Sheikh Abdulla Al Sharqi (Chairman Oryx Industries) and Qais Al Maskati (Managing Director and CEO of FEP) expressed optimism regarding the acquisition, given the lucrative market potential which is supported by the increasing demand for building materials in the construction sector.
Osman Ibrahim € Group President and CEO of Rawabi Holding, expressed his enthusiasm regarding the acquisition saying "We are excited to be part of this consortium and look forward to working with FEP and the other strategic partners to realise the full potential of this opportunity" he added "The Gulf region witnessed unprecedented levels of growth supported by the high level of government spending which had a positive impact on construction related sectors and the companies operating in this field."
First Equity Partners is a private equity manager, specializes in turnaround situations to convert distressed and underperforming ventures into high performance businesses that generate attractive investor returns over a competitive timeframe.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.