Red Sea International (RSI) announced the acquisition of 51% of the share capital of The Fundamental Installation for Electric Work Company Ltd, First Fix, by means of cash consideration. The agreement was executed on Tuesday in Riyadh. The acquisition closure will be subject to satisfaction of certain regulatory and corporate conditions, as well as RSI’s due diligence.
RSI is the developer behind ambitious Saudi tourism destinations the Red Sea and AMAALA. Pioneering modular engineering since 1967, RSI, is known for its strong record and international expertise.
“The objective of the acquisition is to strengthen RSI’s leadership position as well as enhance its presence in the region where it already has a strong brand equity,” said Khalid Fagih, MD and CEO of RSI. “This acquisition strengthens the framework of RSI which synergizes with First Fix as an internal group entity that will further augment the speed of project delivery and excellence. RSI will gain a critical stream of electromechanical construction capability which are very crucial to every single client need,” he added.
First Fix is a Saudi based construction firm since 2014 with more than 190 world class projects through end-to-end solutions that offered integrated design, engineering, and construction disciplines of mechanical, electrical & plumbing (MEP). The company was valued at Saudi Riyals 1.06 billion based on the valuation process that was conducted by Al Rajhi Capital. During 2022, First Fix reached its historic highest annual Revenues of SAR 1.49 billion with a Net profit of SAR 146 million. Apart from past performance, First Fix also has a strong financial forecast, backed by their project order backlog of SAR 3.9 billion which will be delivered during 2023 and beyond.
Speaking on the Saudi market dynamics and positivity, Mr. Fagih added that “As a Saudi Arabian business entity, this is an opportune time for growth and development, with numerous opportunities innovative ideas before us. Saudi Arabia as a nation under visionary leadership, is transforming its landscape and global position through the historic blueprint of ‘Vision 2030’.”
In addition to the traditional oil and gas markets, RSI is diversifying its product portfolio into new sectors such as health, hospitality, education, and residential, where there is a growing demand for its solutions. Furthermore, RSI’s technology and practices are designed to support and facilitate "Net Zero" and "Circular Economy" initiatives. By adopting responsible business practices, RSI aims to make a significant difference in promoting sustainability and environmental responsibility.
“This ambitious transformation plan provides an expansive platform, particularly for those who are intuitive and adaptive. Therefore, any strategy adopted must be focused on readiness to capitalize on the vast landscape of opportunities offered by Vision 2030, ” Fagih concluded.