The partnership has been forged through the acquisition of a strategic block from
Metito, a leader and provider of choice for total intelligent water management solutions in emerging markets, says the move will see significant investments into the company and propel Metito further on its journey of success, said a Metito statement.
The partnership comprises a share purchase agreement with MC and MHI, which will acquire 38.4 percent of Metito shares, predominantly from its existing shareholder
JBIC will also subscribe as a preference shareholder, providing Metito, a capital intensive business, with additional funds of up to
This investment aims at supporting overseas business deployment of Japanese companies, establishing a strategic partnership between the MC, MHI and Metito -- a leading water company in the
Such deal will undoubtedly strengthen the ties between the
The partnership also generates synergy merits in a range of areas, including financial strength and capability, complementary experience and global networks, business development opportunities and operational capability.
Ghandour said: "Metito is already well poised to tap into projects of various scales, and this partnership, in addition to the investment by JBIC, will expedite the company's growth through creating new opportunities and allowing us to become more competitive, globally."
Santo said: "The numerous mutual benefits stemming from this deal will ensure world-class water solutions are brought to new markets, benefitting more people in a stronger and sustainable manner. Metito's long established expertise and local presence in strategic emerging markets will be an advantage when looking to secure further development opportunities in water challenged areas that offer massive growth potential."
Commenting on this,
The deal will see MC and MHI acquire a total of 38.4 percent stake in Metito, and both
Already established as a profitable entity, since
It further strengthened this position as a leading provider in the global water and wastewater industry, registering an annual compound growth rate of 17 percent in revenues, 32.3 percent in EBITDA and 33.6 percent in net profits over the last eight years.
This has enhanced the company's fortunes and has justified our ongoing investment in the company that has achieved in excess of our targeted returns of 3X of our investment.
This collaboration between a long established family business and a leading regional private equity firm, and its evolution into this new partnership with MC, MHI, and JBIC, serves as a model template for future regional investments into family owned businesses in the
As a capital intensive sector, strategic partnerships in the water industry that involve compatible and complementary companies can ensure sustainable and steady reach to water challenged areas, and this partnership is propelled by all the right factors that will ensure its success.
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