DIC buys 45% stake in KEF

Dubai International Capital (DIC), the international investment arm of Dubai Holding, yesterday announced the acquisition of a 45 per cent stake in UAE-based KEF Holding by its emerging markets division.

"Today's acquisition of KEF Holding reinforces DIC's commitment to investing in outstanding Middle East businesses that combine strong growth potential with an experienced management team," Sameer Al Ansari, Executive Chairman and CEO of DIC, said in a statement.

KEF is an international provider of steel castings for valves and pumps serving the oil and gas, mining, industrial, and chemical industries in the Middle East, Asia, Europe, and the US.

"DIC had to fend off fierce competition from international and regional private equity firms to acquire KEF and we played to our strengths demonstrating both our track record of helping portfolio companies realise their growth potential over the long term, and the benefits of our ownership profile. As part of Dubai Holding, DIC can access resources and relationships that are of great benefit to our portfolio companies," Ansari said. "KEF's team have deep industry knowledge, excellent relationships within the sector and a clear vision for growth.

"KEF's founder, Faizal Kottikollon, has in just 11 years built KEF into a significant competitor to European foundries that have been in operation for 100 years and we fully support his strategy for sustaining an impressive growth trajectory," Ansari said in the statement.

Anand Krishnan, Chief Operating Officer of DIC and acting CEO of DIC Emerging Markets, said: "DIC will engage a specialist team dedicated to working and supporting KEF in its endeavors to further expand its operations throughout the Middle East and the Indian Subcontinent."

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