Red Sea International completes acquisition of 51% stake in First Fix

Logo of Red Sea International Co.

Red Sea International Co. (RSI) met all conditions required to complete the transfer of 51% of Fundamental Installation for Electric Work Co. Ltd. (First Fix) on Oct. 1, according to a statement to Tadawul. 

All acquired shares were transferred from the seller to RSI as of the same date, the statement added. 

The deal value will be funded in two tranches, with the first tranche worth SAR 250 million, paid in cash at the acquisition's closing from the company’s resources. 

The selling shareholders will receive a deferred sum of SAR 294.17 million upon the fulfillment of certain relevant conditions, as the company is required to pay the deferred consideration to retain the acquired stake. 

Under the transaction, RSI will have the option to capitalize debt through the issuance of additional shares in First Fix, representing the deferred consideration, subject to the applicable regulatory and corporate approvals. 

Financial statements will be consolidated in Q4 2023, and Al Rajhi Capital was named as the deal financial advisor. 

The deal will help the company acquire electromechanical and civil construction operations, which are fundamental for the current clients.  

In addition, the company has a renowned brand in the industry, and hence the acquisition will positively reflect on both firms through offering full-fledged and high-quality services and enhancing sustainability and environmental issues locally and globally. 

On Sept. 28, RSI signed an agreement with Al Rajhi Bank to secure SAR 330 million to finance the acquisition of a 51% stake in First Fix, in addition to a SAR 250 million loan to settle the deal cash consideration, data compiled with Argaam showed. 

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