ADES targets recovering Saipem acquisition investment within 7 years

Mohamed Farouk, CEO of ADES Holding Co.

Mohamed Farouk, CEO of ADES Holding Co., said the company expects to recover its investment in the acquisition of Saudi Arabian Saipem Ltd (SAS) within about seven years, while achieving an internal rate of return (IRR) of around 15% over that period.

In an interview with CNBC Arabia, Farouk said the transaction is backed by an existing backlog exceeding SAR 3.8 billion extending over the next five years.

He noted that ADES' acquisition strategy focuses on acquiring assets with existing operating contracts, ensuring sufficient cash flows to cover the investment and generate targeted returns.

The deal is expected to contribute approximately SAR 600 million in annual revenue in 2027, or about 6% of the company's expected 2026 revenue, the CEO noted.

ADES said earlier today that its wholly owned indirect subsidiary, ADES Saudi Ltd., signed a binding agreement to acquire SAS, a subsidiary of Saipem International B.V., for SAR 1.07 billion ($285 million), subject to customary adjustment mechanisms.

The total transaction value amounts to SAR 1.07 billion ($285 million), subject to customary closing adjustments.