First Equity Partners and its strategic partners acquire shares of Oryx Industries

UAE, Fujairah: 15 January 2015                                                                   

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 AED 500 million to the venture as of end of Dec 2014.  The initial acquisition of a 50% 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: Sheikh Abdulla Al Sharqi (Chairman of Oryx Industries), State Holding (Qatar), Rawabi Holding (KSA) and Al Waab Real Estate (Kuwait).  A press conference was held on 15th January 2015 at the Ritz Carlton Hotel, DIFC and led by spokespersons representing leading shareholders including Mr. Qais Al Maskati, Managing Director & CEO of First Equity Partners, Mr. Osman Ibrahim, Group CEO of Rawabi Holding, Mr. Majdi Khalaf, Vice Chairman/CEO of Oryx Industries, and Mr. Adnan Ashkanani, Executive Management member of State Holding. Media representatives at the press conference were informed of the finer details of the transaction in addition to learning further information about the upcoming expansion plans and strategic operational plans for future growth at Oryx Industries.

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.

Mr. 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 organization 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% share of the ready mix concrete market in Fujairah and a 20% share of Fujairah's aggregate export market.  Sheikh Abdulla Al Sharqi (Chairman Oryx Industries)  and Mr. Qais Al Maskati (Managing Director and CEO of FEP) expressed their enthusiasm and optimism regarding the acquisition, given the lucrative market potential which is supported by the increasing demand for building materials in the construction sector.

Mr. 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 realize 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."

-Ends- 

About Oryx Industries
Oryx Industries is a leading business group in aggregates production and trading, ready-mix and industrial transportation businesses in the GCC, based in Fujairah. Comprising three subsidiary companies, the group produces around 8 million tons and trades up to 10 million tons of gabbro products. It has a 50% share of ready mix concrete in Fujairah and the Eastern coast of UAE as well as a 20% market share of Fujairah's aggregate exports.  The UAE is currently the world's third largest exporter of quarry products.

About First Equity Partners
First Equity Partners is a private equity manager established in 2011. FEP specializes in turnaround situations to convert distressed and underperforming ventures into high performance businesses that generate attractive investor returns over a competitive timeframe.  FEP has a portfolio of USD 3 billion assets under management invested in diversified sectors such as steel, building materials, real estate, trading and SMEs, with presence across 8 locations in MENA and Europe.

About Rawabi Holding
Rawabi Holding was founded in 1975 and is based in Al Khobar, Saudi Arabia.  It is a purpose-driven conglomerate that has interest in a number of sectors namely: oil & gas, engineering & construction, power, telecom, industrial services, and logistics. The group is also involved in the retail sector and operates in Saudi Arabia and other GCC countries.

About State Holding
State Holding is a holding company established in 2007 in the state of Qatar with focus on MENA and Europe-based investments, primarily in the industrial and real estate sectors.  State Holding implements a prudent investment policy giving a significant weight to growth and sustainability. 

About AlWaab Real Estate
AlWaab Real Estate, based in Kuwait, is an active player in the GCC investment domain. The primary focus of AlWaab is real estate development projects. The current portfolio of AlWaab consists mainly of real estate assets in Kuwait and Qatar. 

© Press Release 2015