03 April 2016· Significant technological capabilities added, with increased efficiencies
· Acquisition expected to drive over SAR 100 million of additional revenue in 2016
Jeddah - Red Sea Housing Services Co. (Tadawul: 4230) announced today the acquisition of AM Modular Sdn Bhd, Malaysia, a leading designer and manufacturer of prefabricated modular buildings. The acquisition is Red Sea Housing Services' first of its kind in Asia, and marks a significant expansion in the geographic footprint of the Company's operations.
Under the terms of the agreement, the complete acquisition is valued at SAR 26.2 million (US$7 million), which includes a down payment of SAR 11.2 million (US$3 million) to be made this year. The remaining SAR 15 million (US$4 million) will be made over the next three-year period for a total of 90 percent of AM Modular's shares.
Don B. Sumner, Acting CEO of Red Sea Housing Services Co., commented on the acquisition: "Our acquisition today of AM Modular serves as a catalyst for Red Sea Housing Services' expansion in the Southeast Asian market. It also fits perfectly into our innovation strategy, thanks to the unconventional construction technology that AM Modular brings to the table. This unique technology will enable Red Sea Housing to create high quality structures up to 12 floors high, with rapid turnaround times and using less manpower."
Mr. Sumner added, "This is an excellent opportunity for us to continue driving the Red Sea Housing growth strategy along with our new colleagues at AM Modular, while maintaining our technological superiority delivering increased value to our customers and shareholders with this acquisition."
Rick Singh, Managing Director and CEO of AM Modular, explained the importance of the acquisition for AM Modular. "This acquisition will allow the exponential growth of Red Sea in the Australasian Region. Our strong presence in Malaysia will enable faster delivery to all Red Sea clients and offer a greater range of product." he said.
Red Sea Housing Services expects its 2016 revenues to increase by over SAR 100 million following this acquisition. The deal will be financed through existing facilities and internal cash flow. The acquisition will be made by the Company's subsidiary based in Dubai, UAE.
About Red Sea Housing Services Co.
Red Sea Housing Services (RSHS) is one of the international market leaders that provides high quality living and working environments for industrial and residential communities. RSHS has cemented its exceptional reputation for designing, planning, producing, managing, leasing, and operating corporate housing solutions in remote and urban locations across the world in over 65 countries for over four decades. RSHS sets up the infrastructure and facilities required for global companies to house large numbers of employees, including housing units, offices, utility services, telecommunications networks, catering and recreation facilities from its manufacturing facilities in Saudi, UAE, and Ghana.
About AM Modular
AM Modular is a company incorporated in Malaysia (C0 No 961291-A) and Australia (ACN146222737).
AM Modular is a designer and manufacturer of prefabricated modular buildings at three factory locations in Malaysia. The company was formed to provide new technology in the design, engineering and construction of modular buildings for the Australian and New Zealand markets with a large focus on the mining and resources market for the supply of quality built camps.
AM Modular Sdn Bhd was registered in Selangor, Malaysia during 2011. Previously the company had traded as MBT Tekbuild Sdn Bhd which had been located in Malaysia since 2007, and since 2009 MBT Australia Pty Ltd located in Adelaide.
AM Modular products meet all Australian, New Zealand and BCA Standards and the production of modular units undergoes regular inspection by Australian Certified inspectors with appropriate Australian Certification documentation issued prior to shipping.
For further information, please contact:
Brunswick Gulf Ltd
Direct +971 (4) 446 6282
© Press Release 2016