Bawan signs agreement to acquire Petronash

27/10/2024 Argaam
Logo ofBawan Co.

Logo of Bawan Co.


Bawan Co. signed today, Oct. 27, an agreement with Petronash Global to acquire the entire stake of Petronash Holding at $175 million (nearly SAR 656 million), adjustable based on the company’s future results.

 

Bawan will pay to Petronash Global an initial amount of $80 million (nearly SAR 300 million) in exchange for 80% of Petronash Holding’s shares, subject to the necessary terms and approvals under the SPA.
Bawan will also pay Petronash Global a maximum of $60 million (approximately SAR 225 million), subject to achieving set financial targets from 2024 to 2026.
Additionally, Bawan will purchase the remaining 20% of Petronash Holding’s shares after the audited financial statements for 2027 or 2028 are issued, at an agreed valuation method.
Petronash Holding’s founder will be the chairman of the board for three years from the date of closing under the SPA. This will enable him to continue supporting the company in achieving its targeted growth in the coming years.
 
Petronash, established in 2000 in the UAE, is a globally leading company in manufacturing integrated engineering solutions for the oil and gas sector. The company primarily operates within the GCC market, employing around 1,000 staff and operating multiple manufacturing facilities located in Dammam, Saudi Arabia; Dubai and Abu Dhabi; Doha, and Chennai, India, with a total manufacturing area of about 120,000 square meters.
 
The company mainly supplies its products to national oil and gas companies across the GCC countries and also exports many of its products to other countries in the Far East, Africa, and the Americas.
 

Petronash Financial Statements from 2021-24

Year

Revenue

Net Profit (Loss)

2021*

238

(73)

2022

472

5

2023

722

46

Period ended September 2024

699

69

*COVID-19

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