RED SEA HOUSING SUBSIDIARY INKS SHAREHOLDER DEAL WITH SHERWIN WILLIAMS

Red Sea for Building Materials and Equipments Trading Company, a subsidiary of Red Sea Housing Services Company, announces that it has acquired 81% of the capital for Premier Paint Company, which is equal to SAR 10 million. Sherwin Williams, which specializes mainly in the paint and coating sector, owns the remaining 19% of the capital. Consequently, Red Sea Building Materials and Equipments Company and Sherwin Williams have entered into a shareholders agreement effective from 06/02/2013. This acquisition was financed through intercompany borrowings from Red Sea Housing Services Company. 
Premier Paint Company specializes in the production and distribution of the different paint and coating products, which include decorative, industrial and commercial paint. The companys headquarter and manufacturing facility are both located in Jeddah. The production process at the facility is expected to commence by the third quarter of 2013. 
Since Mr. Jamal Abdullah Al Dabbagh, a Board Member of Red Sea Housing Services Company, owns 5% of the capital of Red Sea for Building Materials and Equipments Trading Company, this shareholders agreement and all related future transactions will be considered Related Party Transactions. Therefore, this will be presented at the nearest convened Assembly General Meeting for voting by the shareholders. 
Founded in 1866, Sherwin-Williams is a global leader in the manufacture, development and distribution of paints and coatings, and offers wide range of products to fulfill the requirements of professional, industrial, and commercial customers, in addition to the production of coatings for marine purposes. Furthermore, the company has a network of more than 4,000 outlets around the world that distribute their various products, which have contributed to an astonishing total sales of more than USD 8.76 billion (SAR 32.85 billion) in 2011. 
This acquisition comes as part of the previously announced Growth Strategy to invest in the Building Materials sector, as Red Sea Housings local market understanding and reach across the region coupled with Sherwin-Williams world-class paint manufacturing capability and the know-how will ultimately deliver greater benefits to a broad range of customers in Saudi Arabia and the region. This new partnership creates the perfect opportunity for Red Sea Housing to move ahead with its aggressive growth strategy, that is well planned for the coming years