DSI has acquired 82% of Passavant-Roediger at an enterprise value of Dh145 million

Drake & Scull International PJSC (DSI) has acquired Passavant-Roediger, a global developer of wastewater, water and sludge treatment technologies with over 5,000 installations and a presence in 13 countries across Europe, Middle East, North Africa and Asia. The enterprise value of this acquisition is Dh145 million.

Under the acquisition agreement, DSI will own 82% of Passavant-Roediger. The remaining 18% will remain with Bilfinger Berger, a publically listed German company internationally active in construction services.

Majid Al Ghurair, Chairman of Drake & Scull International signed the agreement in the presence of Joachim Foerderer, Managing Director of Bilfinger Berger Facility Services.

As DSI’s first acquisition since listing with the Dubai Financial Market (DFM) in March 2009, it is seen as an integral step in the company’s development and implementation of its long term strategy.

“This is a strategic acquisition that realises the company’s plans for both vertical and horizontal expansions,” said DSI CEO, Khaldoun Tabari. “It gives DSI vertical expansion by adding to the services that the company offers, and horizontal expansion through opening new markets and providing the company with a larger geographical reach. The engineering projects taken by Passavant-Roediger will also generate revenues for DSI’s other business streams including MEP and Civil Contracting, as wastewater and water treatment plants require engineering, procurement and construction disciplines, which can be accumulatively provided by DSI.”

Passavant-Roediger’s solutions will extend DSI’s ability to deliver superior services to the region, which will continue to position DSI as a leading end to end provider in the construction industry.

Tabari continued: “From a business perspective, the wastewater and water treatment business is underserved in the MENA region, unlike North America and Europe, and there is an immediate need in the market for additional infrastructure networks and plants. Research shows that around $25 billion per annum is currently being spent on wastewater treatment worldwide, with demand set to rise sharply in the coming years, exceeding $81 billion by 2012. Key growth areas will be China, India and the Middle East, with each increasing their annual investments in wastewater treatment by more than eight per cent.”

Passavant-Roediger currently operates in, Romania, Hungary, Poland, Croatia, Germany, Algeria, UAE, Turkey and China with projects around the world including Algeria, Jordan, Lebanon, Egypt, UAE and Saudi Arabia. The company’s current backlog stands at over Dh 450 million. The company has advanced research and development centres for wastewater, water and sludge treatment. It provides solutions for Raw Water Treatment; Desalination/Demineralisation; Ground Water and Surface Water treatment; Treatment of Residues; Municipal wastewater treatment; Industrial wastewater treatment; Sludge treatment; Mechanical & Biological Waste Treatment.