Gulf Construction Online - DSI acquires wastewater treatment ace

Environment Protection

DSI acquires wastewater treatment ace

01 December 2009

DRAKE & Scull International (DSI) has acquired Passavant-Roediger, a global developer of wastewater, water and sludge treatment technologies with more than 5,000 installations and a presence in 13 countries across Europe, the Middle East, North Africa and Asia.

The enterprise value of this acquisition is Dh145 million ($39 million) and under the agreement, DSI will own 82 per cent of Passavant-Roediger with the rest of 18 per cent remaining with Bilfinger Berger, a publicly-listed German company with an international role in construction services.

Commenting on DSI’s first acquisition since listing with the Dubai Financial Market (DFM) in March 2009, DSI CEO Khaldoun Tabari says: “This is a strategic acquisition that realises the company’s plans for both vertical and horizontal expansions.”

“It gives DSI vertical expansion by adding to the services that the company offers, and horizontal expansion through opening new markets and providing the company with a larger geographical reach.”

“The engineering projects taken by Passavant-Roediger will also generate revenues for DSI’s other business streams, including MEP (mechanical, electrical and plumbing) and civil contracting, as wastewater and water treatment plants require engineering, procurement and construction disciplines, which can be accumulatively provided by DSI.”

“With the rapid growth of population and expanding urbanisation, water, wastewater and sludge treatment issues have become some of the most important issues for governments and authorities all over the world besides addressing potential water shortage,” explains Tabari.

“There is a clear need for water, wastewater and sludge treatment solutions in the Gulf as the population grows rapidly and the shortage of water intensifies. Abu Dhabi has the highest average water consumption per capita in the region, so we need to make sure that the water being consumed is treated and reused efficiently if we want to sustain our resources and environment for the future.”

According to Tabari, from a business perspective, the wastewater and water treatment business is underserved in the Middle East and North Africa (Mena) region, unlike North America and Europe, and there is an immediate need in the market for additional infrastructure networks and plants.

Around $25 billion per annum is currently being spent on wastewater treatment worldwide, with demand set to rise sharply in the coming years, exceeding $81 billion by 2012.