Saudi firm buys 40% of Emaar’s subsidiary Multiforms
Saudi Arabia-based Arabian Company for Water and Power Development (ACWA) has acquired a 40 per cent stake in Multiforms, the architectural façade specialist that is a subsidiary of Emaar Industries and Investments (EII).
ACWA is owned by the AK Al Muaidib and Sons Group and A Abunayyan Group. The company specialises in infrastructure projects development including water and energy application systems, wastewater management systems, and is also an active investor in the manufacturing and real estate sector.
“ACWA is an established investor in the manufacturing sector and the deal is a strategic move to further strengthen Multiforms in its overall expansion strategy, which includes looking abroad into foreign markets, including Saudi Arabia – a market that holds much promise for architectural façade and aluminium manufacturing,” Mohammed Ali Al Hashimi (pictured above, right), Vice-Chairman of EII and Chairman of Multiforms, said in a statement.
ACWA Chairman Mohammed Abdullah Abu Nayyan (pictured above, left) said: “Our decision to invest in Multiforms is a natural progression in our growth strategy. Since its partnership with Emaar Industries and Investments, Multiforms has become one of the fastest growing in its sector due to the concerted efforts aiming at enhancing the productivity of the company and unlocking its full potential. Through our partnership we aim to support its move into other new markets, including Saudi Arabia, where the strong performance of the construction sector offers a robust growth environment.”
EII Chief Executive Dr Ahmad Khayyat added: “Our partial exit from Multiforms is in line with our strategy aimed at building long-term value for our subsidiaries and unlocking their growth potential. A strong partner like ACWA Power Development will ensure a quick access for Multiforms into its target markets. This is also in accordance with our commitment to our stakeholders to enhance value considerably.”
Multiforms manufactures and supplies an extensive range of advanced architectural materials including aluminum windows, doors, curtain walling and cladding. The company has four manufacturing facilities located in Al Quoz Industrial Area and Dubai Investment Park with a total area in excess of 600,000 square feet. Multiforms has invested Dh120 million on expansion efforts.
“The acquisition will lend momentum of growth for Multiforms, as we are seeking to duplicate the success of the partnership with EII in other countries. Since our partnership with EII we have posted a 900 per cent growth, and we’ve managed to secure a wide range of deals both inside and outside the UAE. Multiforms also has booked orders worth Dh1.7 billion for year 2008 and 2009,” said Multiforms Chief Executive Firas Rifai.
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