Bahrain-based alternative investment firm Investcorp has acquired a significant minority stake in REDA Gulf Holding through its Saudi Pre-IPO Growth Fund, joining a consortium led by AlTouq Group and Thara Future Investments that is buying the Saudi fire protection and safety company.
REDA Gulf Holding is the holding company of REDA Hazard Control, Investcorp said in a statement on Tuesday. Financial terms of the transaction were not disclosed.
Founded in Saudi Arabia in 1986, the company provides fire protection, safety and security systems, covering product supply and distribution, local assembly and manufacturing, installation and maintenance. It employs more than 1,700 engineers and technicians and operates in 19 countries, according to the statement.
The transaction is the latest investment by Investcorp’s Saudi Pre-IPO Growth Fund, the statement said, and reflects the consortium’s confidence in the long-term growth prospects of Saudi Arabia and the wider Gulf.
Walid Majdalani, head of Investcorp Private Equity Emerging Markets, said the investment reflected the fund’s strategy of backing businesses with strong fundamentals and partnering with management teams and prominent shareholders to accelerate growth.
AbdulMohsen AlTouq, chairman of REDA Gulf Holding, said the company had built its reputation over nearly four decades and that the consortium planned to work with management on its next phase of growth.
Mohamad Ezzat Beck, chief executive of REDA Gulf Holding, said the company would continue to expand its local manufacturing and engineering capabilities and pursue opportunities in Saudi Arabia and international markets.
