Arabtec buys out EFECO
Company completes deal for remaining 45% of MEP contractor
Arabtec Holding has announced that it has bought the remaining 45% stake in MEP firm EFECO it did not already own, taking its stake in the company to 100%.
EFECO was set up in 2001 to offer MEP services to the construction industry across the Middle East. It has operations in the United Arab Emirates, Qatar, Jordan, and the Kingdom of Saudi Arabia.
The price it has paid for the remaining share of the business hasn't been disclosed.
Arabtec CEO Hasan Abdullah Ismaik said: “The acquisition of EFECO consolidates Arabtec’s position as a market leading provider of an integrated set of specialised engineering and construction services. Now that EFECO is a fully-fledged member of the Arabtec Group, we are in a far better position to enhance its growth and ensure it maintains its position as a market leader in electromechanical services. EFECO will remain a major cornerstone for Arabtec’s unique offering.”
Arabtec had been linked with a move to be the remaining part of the firm for months. When it unveiled plans to raise up to $1.3bn through a rights issue earlier this year, it said that some of the proceeds would be used to build its existing offer in MEP and facilities management - both through organic growth and acquisition.
Ismaik added: “With the current upswing in the construction industry, EFECO has high potential for growth. The move is perfectly in line with our strategy of diversifying our sources of income and optimizing our revenue-generating business.”