Red Sea International (RSI), a leading provider of specialised prefabricated modular buildings for various real estate and industrial sectors, said it has completed the acquisition of a 51% stake in Saudi construction firm - The Fundamental Installation for Electric Work Company (First Fix) - for cash. 

 

Announcing the strategic deal today (June 13), RSI said this comes as part of its strategy to diversify the Saudi group's product portfolio by venturing into new sectors such as health, hospitality, education and residential other than the traditional oil and gas markets.  

 

The closing of the deal will be subject to satisfaction of certain regulatory and corporate conditions, as well as RSI’s due diligence.

 

Pioneering modular engineering since 1967, RSI is known for its strong record and international expertise, said its top official.

 

"The objective of the acquisition was to strengthen RSI’s leadership position as well as enhance its presence in the region where it already has a strong brand equity," remarked its Managing Director and CEO Khalid Fagih.

 

"This acquisition strengthens the framework of RSI which synergises with First Fix as an internal group entity that will further augment the speed of project delivery and excellence. We will gain a critical stream of electromechanical construction capability which are very crucial to every single client need," he added.

 

Set up in 2014, First Fix has been involved in more than 190 world class projects through end-to-end solutions that offered integrated design, engineering, and construction disciplines of mechanical, electrical and plumbing (MEP). 

 

The Saudi company is currently worth SR1.06 billion ($282 million) based on the valuation done by Al Rajhi Capital. 

 

Last year, First Fix had reached its historic highest annual revenue figure of SR1.49 billion with a net profit of SR146 million. 

 

On the Saudi market dynamics and positivity, Fagih said: "As a Saudi business entity, this is an opportune time for growth and development, with numerous opportunities innovative ideas before us. Saudi Arabia as a nation under visionary leadership, is transforming its landscape and global position through the historic blueprint of ‘Vision 2030’.”

 

In addition to the traditional oil and gas markets, RSI is diversifying its product portfolio into new sectors such as health, hospitality, education, and residential, where there is a growing demand for its solutions. 

 

Furthermore, RSI’s technology and practices are designed to support and facilitate 'Net Zero' and 'Circular Economy' initiatives. By adopting responsible business practices, RSI aims to make a significant difference in promoting sustainability and environmental responsibility, stated Fagih.

 

"This ambitious transformation plan provides an expansive platform, particularly for those who are intuitive and adaptive. Therefore, any strategy adopted must be focused on readiness to capitalize on the vast landscape of opportunities offered by Vision 2030," he added.-TradeArabia News Service