Rawabi Holding Newsletter Issue 26

Business News
ENERGY CAPITAL GROUP
ACQUIRES 51% STAKE IN
REDLAND INDUSTRIAL
SERVICES ARABIA LTD.
(RISAL)
Energy Capital Group acquires 51%
stake in Redland Industrial Services
Arabia Ltd. (RISAL), a leading Saudi
-based oil & gas industrial cleaning
and environmental services company.
Kingdom of Bahrain – 26 September
2011 – Energy Capital Group (“ECG”),
a private global investment firm focused
on energy and energy-related
corporate investments, announced today
the acquisition of a 51% stake in
RISAL, a Saudi Arabia-based Oil & Gas
industrial cleaning and environmental
services company.
RISAL’s current shareholder, A.A.Turki
Group of Companies (ATCO), will retain
a 49% stake in the company. ATCO,
which is also among ECG’s founding
shareholders along with Rawabi Holding
Company, Al Muhaidib Group and
Al-Ansari Holding Company, is one of
Saudi Arabia’s leading conglomerate
companies successfully operating in
the governmental, industrial and consumer
sectors. RISAL was established
in 1976 by ATCO to undertake major
maintenance contracts for Saudi Aramco
in the Eastern Province of Saudi
Arabia. It has since grown the company
into a well known provider of industrial
services to a broad range of companies
operating in the downstream oil & gas,
petrochemicals, power & water and
EPC sectors.
Specifically RISAL provides four key
services: waste management, chemical
cleaning, catalyst handling and water
jetting in addition to a number of additional
complementary activities. The
company’s services are provided on
customer plant sites during the precommissioning
of new plants, Operational
maintenance of running plants
and shut downs and turnarounds of
running plants. Its client list today includes
Saudi Aramco, SABIC, SWCC,
SEC and all major engineering and
construction companies active in the
Saudi market, which it serves through
a team of 500 multi-skilled employees
operating in five strategic locations
throughout the Kingdom including
Dammam, Jubail, Rahima, Riyadh,
Jeddah and Yanbu.
Commenting on
the announcement,
Mr. Ali
Abdulaziz Al-
Turki, Founding
Partner and
CEO of Energy
Capital Group,
Mr. Ali A. AlTurki Rawabi Group
Vice Chairman:
“We are delighted to announce the acquisition
of a majority stake in RISAL,
a long-established player in the industrial
services market with a strong,
experienced and stable management
team that has over the last five years
made significant strides in building
the RISAL brand and strengthening its
operational and financial performance
to effectively position the company for
its next phase of growth. This transaction
will provide RISAL with further
operational support and capital in order
to help the company fully maximize
market opportunities that exist
for its services, which are substantial
and growing in line with the Kingdom’s
economy, and plans for the further development
of downstream petroleum
and other related industrial sectors.
This transaction is also significant, providing
our investors with an opportunity
to take part in this growth and benefit
from the ongoing development of the
region’s energy and industrial sectors,
where opportunities are often difficult
for individual and institutional investors
to access.”
The main growth drivers for RISAL are
the steady maintenance requirements
of existing plants across the Kingdom
plus the large number of new capital
projects that are expected to come on
line including the addition of numerous
planned oil and gas refineries and petrochemicals
plants. Estimates have put
past total capital projects in the areas
that RISAL is active at approximately
$11 billion for 2010 with expectations
that this figure will grow substantially
over the coming years to over $33 billion
by 2014, based on confirmed announcements
of new projects.
Mr. AlTurki added: “RISAL is well
placed to capture these opportunities
and leverage the solid foundations
it has developed. We look forward to
working together with ATCO and RI-
SAL’s management team to help the
company build even further value and
gain maximum benefit from our joint
industry experience, networks and customers
as well as synergies that can
be achieved with other investee companies
of ECG and its investors in this
transaction.”
ECG, which was established in 2008,
has already completed over $100
million of investments in global and
Middle East energy services companies
including the recently announced
strategic investment, made alongside
Bill Gates, in NEOS GeoSolutions,
Inc. a US-based provider of exploration
solutions and the acquisition of
the Canadian company, United Safety
Services, a leading H2S safety services
and equipment provider, in partnership
with Morgan Stanley Principal Investments
and company management.
ECG continues to evaluate opportunities
to invest in both global and regional
energy and related services companies
with significant opportunities to
expand their client and revenue base in
the lucrative MENA and GCC markets,
where the widening gap between longterm
growth in the demand for energyrelated
services and equipment and
the supply of such services and equipment
continues to offer strong growth
potential.
About Energy Capital Group
Energy Capital Group (“ECG”),
established in 2008, is a private
global investment firm engaged in
originating, structuring and acting
as a lead equity investor in the energy
and related services sectors.
The firm, which operates offices in
Bahrain, Dubai and London, and is
managed by a team of leading investment
and energy sector experts
and backed by a group of strategic
shareholders. These include Rawabi
Holding Company, ATCO, Al Muhaidib
Group and Al-Ansari Holding
Company, some of Saudi Arabia’s
most prominent family industrial
groups, each with decades of experience
in oilfield and industrial services
among other sectors as well as
global recognition as leaders in the
Middle East energy industry.
ECG provides a unique platform
through which investors can benefit
from the strong growth potential
and demand driving expansion
of the global energy sector and
the opportunities this presents for
significant long-term capital appreciation
and returns. Leveraging
the relationships and networks of
its management and shareholders,
ECG is distinctive in its ability
to identify strong investment
opportunities among global players
in the energy services sector. It is
also well positioned to help portfolio
companies develop through the
provision of capital, market expertise
and access to new and profitable
growth markets particularly
those of the Middle East and North
Africa (MENA) region, which represents
the world’s largest hydrocarbon
centre and thus access to
some of the largest potential pools
of contracts and sources of revenue
for oil field services and equipment
companies.
For further information please visit:
www.energycapitalgrp.com
6 Rawabi News Issue 26 Jul-Sep 2011
Rawabi News Issue 26 Jul-Sep 2011
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