From left: Tariq Al-Sudairy, Managing Director & CEO of Jadwa Investment; Tameem Al-Shebel, CEO of SMI; Dr. Raed Al-Rayes, Deputy Chief Executive & General Manager, Apicorp pose for a group photo
RIYADH — Jadwa Investment, a leading Saudi Arabian private equity house and investment bank, announced Monday the acquisition of a majority stake in Saudi Mechanical Industries (SMI) by the Jadwa Mechanical Opportunities Fund along with Arab Petroleum Investments Corporation (Apicorp).
Headquartered in Riyadh, SMI is a Saudi engineering company engaged in manufacturing a variety of products with a focus on fluid flow and control equipment. The product range includes engineering components, pumps, gear drives, and steel and bronze bars for use in a broad array of industries, including oil & gas, infrastructure, automotive, agriculture and mining. The company, which was established in 1982, today employs over 800 professionals, working with more than 290 clients across Saudi Arabia, United States, Europe, and the MENA region.
“We are very pleased to announce our investment in SMI and to have Apicorp as our investment partner,” said Tariq Al Sudairy, Managing Director and CEO of Jadwa Investment. “We see considerable regional and global demand for engineering components across a range of strategic industries, including oil & gas, mining, infrastructure, original equipment manufacturing, automotive and agriculture. We also see significant local opportunity in the ongoing drive to localize the manufacturing of many engineering components in line with the Kingdom's National Industrial Strategy. SMI is widely respected for its strong technical and engineering capabilities and is well positioned to expand in this promising sector.”
Dr. Raed Al Rayes, Deputy Chief Executive & General Manager of Apicorp, said: “Apicorp is very pleased to add SMI to its investment portfolio.” He added “we look forward to working with Jadwa Investment and with SMI's management to expand SMI's oil & gas business. SMI already has a well-established client base and a distinguished management team, which should allow the company to solidify its position locally, regionally, and globally.”
SMI's CEO Tameem Al Shebel said: “We are excited to have Jadwa and Apicorp among our shareholders and believe they will contribute greatly to SMI's future development. We look forward to working closely with both institutions and leveraging their expertise in strategy, corporate finance, governance, and business development to take SMI to its next chapter of growth.”
The investment in SMI marks Jadwa's eighth private equity deal and follows a series of successful milestones in the company's private equity business. In 2014, Jadwa completed two major Tadawul listings with Abdulmohsen Al Hokair Group and Al Hammadi Company for Development and Investment, and a full exit via a trade sale with Gulf United Foods Company. Jadwa also announced in September 2014 the full acquisition of Global Environmental Management Services, a Jeddah based industrial waste management company, by its Jadwa Waste Management Opportunities fund.
To date, Jadwa Investment has executed over SR4.5 billion in private equity investments across multiple sectors including healthcare, hospitality and entertainment, food and beverage, building materials, consumer electronics, oil & lubricants, and waste management. — SG
