Dubai International Capital LLC (’DIC’), the international investment arm of Dubai Holding, today announced the acquisition of a 45 percent stake in UAE-based KEF Holding (’KEF’) by its Emerging Markets division. KEF is an international award-winning provider of steel castings for valves and pumps serving the oil and gas, mining, industrial, and chemical industries in the Middle East, Asia, Europe, and the United States.
Sameer Al Ansari, Executive Chairman and CEO of DIC, said: “Today’s acquisition of KEF Holding reinforces DIC’s commitment to investing in outstanding Middle East businesses that combine strong growth potential with an experienced management team - KEF’s team have deep industry knowledge, excellent relationships within the sector and a clear vision for growth. KEF’s founder, Faizal Kottikollon, has in just 11 years built KEF into a significant competitor to European foundries that have been in operation for over 100 years and we fully support his strategy for sustaining an impressive growth trajectory.”
“DIC had to fend off fierce competition from international and regional private equity firms to acquire KEF and we played to our strengths demonstrating both our track record of helping portfolio companies realise their growth potential over the long term, and the benefits of our ownership profile. As part of Dubai Holding, DIC can access resources and relationships that are of great benefit to our portfolio companies.”
Established in 1997, KEF Holding, based in the Sharjah Hamriya Free Zone, is the holding company of its two flagship businesses including Emirates Techno Castings (‘ETC’) and JC Middle East (‘JCME’). Collectively, ETC and JCME form the Middle East’s first fully automated foundry boasting a production capacity of 36,000 tonnes per annum. KEF serves over 70 clients including leading market players in the oil and gas industries such as Takreer, ENOC, Qatar Petroleum, KOC, PDO, Qatar Gas and Tyco. KEF was recognised for its best-in-class practices, as evidenced by their award of Best Foundry in the World by Weir Clear Liquid, a division of Weir Group.
Faizal Kottikollon, CEO of KEF Holding, said: “We are delighted to choose DIC as our strategic partner and shareholder. DIC’s ability to leverage their strong relationships in our key target growth markets, mainly Saudi Arabia and India, will elevate KEF’s ready capabilities and talent. We are confident that with DIC’s market experience and guidance, KEF will be ready for an initial public offering in the near future.”
Anand Krishnan, Chief Operating Officer of DIC and acting CEO of DIC Emerging Markets, added: “DIC congratulates KEF on creating its dynamic technology-based platform that will allow it to maximise its full growth potential and capture opportunities in new industries, products and geographies. DIC will engage a specialist team dedicated to working and supporting KEF in its endeavors to further expand its operations throughout the Middle East and the Indian Subcontinent. DIC is proud to complement its existing portfolio of technical manufacturing companies with the addition of KEF and will strive to add value by building synergies and relationships among all parties. DIC’s investment in KEF Holding further diversifies our portfolio of market-leading companies and is in line with DIC’s strategy to focus on the emerging markets and Asia as key drivers of growth”.
