Saudi Arabia’s Bawan Company confirmed on Sunday that it has signed a Sale and Purchase Agreement (SPA) with Petronash Global to acquire the UAE-based Petronash Holding, a key global supplier of engineered solutions for the oil and gas industry.

The acquisition, valued at $175 million (approximately 656 million Saudi riyals), will be financed through bank facilities and Bawan’s internal cash reserves, the Saudi-listed building materials conglomerate said in a statement.

The final amount is subject to adjustment based on Petronash's future performance, according to a Zawya report last month.

Completion of the transaction is subject to regulatory and contractual requirements, including the approval of the General Authority for Competition, the stock exchange statement noted.

Bawan said the acquisition supports its strategy to diversify into fast-growing industrial sectors, offer specialised engineering solutions, drive sustainable growth in key markets, and increase shareholder value.

Bawan was advised by Khoshaim and Associates (legal), PricewaterhouseCoopers (financial), and Rystad Energy (commercial).

Petronash was advised by Freshfields Bruckhaus Deringer and Piper Sandler.

Established in 2000, Petronash is considered one of the leading global manufacturers of engineered packaged solutions for the oil and gas sector. The Company operates primarily in the GCC market, with approximately 1,000 employees, and factories located in Saudi Arabia (Dammam), UAE (Dubai and Abu Dhabi), Qatar (Doha) and India (Chennai) with a total manufacturing area of approximately 120,000 square metres (sqm).

Petronash posted revenues of SAR 699 million for the period ending 30 September 2024 with net profit of SAR69 million. For financial year 2023, the company posted revenues of SAR 722 million and net profit of SAR46 million.

(Writing by SA Kader; Editing by Anoop Menon)

(anoop.menon@lseg.com) 

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa