On September 21, 2010, Zamil Industrial Investment Company (Zamil Industrial) announced the signing of the merger term sheet for the possible merger of select insulation businesses to form a new company with Gulf Insulation Group (GIG). The company would like to inform its shareholders that the parties signed the final merger agreement Sunday afternoon, 17 April 2011, in Riyadh, with representatives of both partners in attendance.
The total cash investment by Zamil Industrial in the merger company is SAR 150 million through internal financing. The Enterprise Value of the new company will be SAR 830 million, excluding the stake of the foreign partners in some of the merged companies. Zamil Industrial will be the managing partner with a 51 percent controlling interest.
The newly formed company is expected to bring additional net profits to Zamil Industrial by end of 2011. It is worth mentioning that this new company will be consolidated under Zamil Industrial from 01/01/2011.
Abdulla M. Al Zamil, CEO of Zamil Industrial, said, "We have been working over the last five years on developing the insulation sector, which included fiberglass and rubber insulation products with the addition of the rockwool and pre-insulated pipes. These product offerings will cover the growing market demand for insulation material that effectively conserves energy and reduces consumption. We also call to expedite the introduction of the Saudi building codes systems."
Abdulaziz M. Al Namlah, Chairman of Gulf Insulation Group, praised this new partnership with Zamil Industrial, which will bring great value to both partners due to their extensive expertise in the insulation and building materials industries.
The newly formed merger company will include the partners' stake in the following companies:
1. Arabian Fiberglass Insulation Co. (AFICO)
2. Armacell Zamil Middle East Co. (AZMEC)
3. Saudi Rockwool Factory Co. (SRWF)
4. Saudi Pre-Insulated Pipes Industries (SPPI)
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For more information on this press release, contact Said Al Daajani, Zamil Industrial, Corporate Communications, Tel: (966) 3 8108180, Fax: (966) 3 8108190, or e-mail: saidaldaajani@zamilindustrial.com
© Press Release 2011
