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Saudi Arabia's Red Sea International Co. has acquired a 51% stake in local construction firm Fundamental Installation for Electric Work Co. Ltd. (First Fix) for a total transaction value of 544.2 million ($145 million).
Red Sea said it will initially pay SAR 250 million in cash to the sellers. Further, a deferred consideration of SAR 294.2 million will be settled within four months from the signing date, subject to satisfaction of certain conditions, the prefabricated housing company said in a statement to Tadawul on Monday.
Red Sea will retain the option to capitalize the debt represented by the deferred consideration, it added, noting that any similar transaction will be subject to applicable regulatory and corporate approvals.
The acquisition will be funded through bank loans.
First Fix, a mechanical, electrical & plumbing firm, made a net profit of SAR 148 million in 2022.
The sellers are MSB Holding Co., a limited liability company incorporated in Saudi Arabia, Fares Esmat Al Saady and Ziad Jan Alsayegh.
(Writing by Brinda Darasha; editing by Seban Scaria)
