Dubai-based contractor Drake & Scull International (DSI) has bought a majority stake in German water and wastewater technology firm Passavant Roediger for an enterprise value of AED145m.
The deal is the first of several acquisitions planned by DSI following its AED1.2bn stock market flotation in July 2008.
DSI acquired 82 per cent of shares in Passavant Roediger. The other 18 per cent remain with Bilfinger Berger, a publically listed German construction services company.
DSI is also planning acquisitions of mechanical, electrical and plumbing and civil contracting businesses in Saudi Arabia, Qatar and Kuwait.
“We already have general board approval on acquisitions in Qatar and Kuwait,” says Khaldoun Tabari, chief executive officer at DSI. “We have done the legal and financial diligence, so it is just the matter of a board decision and it is imminent.”
DSI recorded sales of AED1.425bn in 2008. The company is targeting revenues of AED5bn by 2012.