MANAMA: Seera Investment Bank has successfully concluded the acquisition of UK-based BWA Water Additives.
Following the successful completion of its leveraged buying, a team of senior management of Seera, a Sharia-compliant Bahrain-based investment bank, concluded a visit to the company's headquarters in Manchester.
A number of high-level meetings were held with BWA's executives and a comprehensive overview and a strategic roadmap of this venture were effectively formulated.
Seera considers the acquisition of this leading water treatment solutions provider as a strong addition to its existing portfolio.
The breakthrough transaction was financed by Royal Bank of Scotland and HSBC , with mezzanine financing provided by RBS Equity Fund.
The acquisition brings into Seera's fold a dominant niche player with high growth dynamics and strong cash flow characteristics in a non-cyclical sector, making Seera one of the first investment banks in the GCC to have a presence in the burgeoning water treatment market.
"This acquisition will help Seera establish a presence in this important space and we look forward to exploiting the synergies of both companies to gain a competitive advantage," Seera chairman Asaad Albanwan said.
"Global demand for specialty water treatment chemicals will experience significant growth over the coming years and we feel very positively about investing in this sector," he said.
BWA presents an attractive business model with high operating cash conversion cycle and low asset intensity. With 35 years of leadership in developing and marketing high-performance chemicals for water treatment, BWA has an established presence in a market that deters new entrants with high regulatory barriers, high entry costs and specialised know-how requirements.
Seera general manager and acting chief executive Abdulla Janahi said this transaction is highly significant given the fact that leveraged finance is going through turbulent times.
"The level of leverage we were able to secure was at the high end, illustrating the very positive support that Seera and BWA as a company received from the banking industry."