The Clap
The Red Sea Housing (4230) has purchased 51% of First Fix’s capital in a deal estimated at SAR 544 million ($145 million).
What
Red Sea Housing indicated that the terms of the deal, which still need regulatory approvals, include SAR 250 million (initial consideration), to be paid to the sellers in cash at the specified rates and that the remaining SAR 294.17 million (forward consideration) be settled within 4 months from the date of signing.
The company will retain the option to raise capital for the debt resulting from the forward portion of the purchase price.
So What
Red Sea Housing is famous for providing housing solutions and building residential complexes for workers in gas, oil, and mining companies since most of these companies implement their projects outside the urban area.
First Fix, located in Jeddah, provides turnkey solutions for more than 190 international projects.
It includes the integrated design, engineering, mechanical, electrical, and plumbing construction fields and has more than 8 thousand employees and workers all over KSA.
Now What
Last year, First Fix recorded the “highest annual revenue in its history” of SAR 1.49 billion, with a net profit of SAR 148 million.
The company expected to record “strong financial results”, as a result of the backlog of project execution orders in its current order book amounting to SAR 3.4 billion.
