Saudi Vitrified Clay Pipes Co. (SVCP) has acquired today a 75% stake of Advanced Piping Solutions for SAR 56.25 million, the company said in a bourse statement.
Under the agreement, the buyer and the seller will implement the agreement terms within 30 days of signing the acquisition agreement.
Both parties will request the approval of the competent authorities including the Saudi Industrial Development Fund (SIDF) and the General Authority For Competition.
Advanced Piping Solutions' contract of incorporation will be modified to reflect the acquisition agreement.
The parties of the agreement included Vision Global Investments and Al Harbi Holding Co. and the deal will be financed via a bank credit facility.
Advanced Piping Solutions, which produces fiberglass and concrete pipes, recorded sales revenue of SAR 104.2 million in 2017, SAR 152.9 million in 2018 and SAR 146.4 million in 2019.
The company also reported net earnings of SAR 4.6 million in 2017, SAR 16.5 million in 2018 and SAR 8.6 million in 2019.
The acquisition aimed to diversify SVCP’s products and markets, and introduce new products of fiberglass and concrete pipes.
In January, SVCP signed a non-binding memorandum of understanding (MoU) with the shareholders of Advanced Piping Solutions to acquire 75% of the latter’s shares for a cash consideration.
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