Gulf Capital buys stake in Sakr Energy Solutions
Controlling stake follows 'defensive and fast-growing' strategy
Private equity firm Gulf Capital has acquired an 82.7 per cent stake in Sakr Energy Solutions FZCO (SES), a provider of temporary power generation, to capitalise on the growing need for power across the Middle East, Africa and South East Asia.
SES operates in a growing region with a booming population, yet with inadequate power generation infrastructure and deep structural power supply/demand imbalances. The demand for temporary power significantly outstrips supply and this shortfall is expected to increase over the medium to long term on the back of a booming population, especially in the Middle East North Africa South East Asia (MENASA) and Africa regions. The global deficit in power generation increased from 50,000 MW in 2004 to 150,000 MW in 2010, most of which remains unmet and the deficit is expected to grow to 600,000 MW by 2015. This presents SES with a significant opportunity to grow in the medium and long-term.
SES is headquartered in Jebel Ali free zone, Dubai, UAE and was launched in July 2007 as a result of a carve-out of the Middle Eastern assets of GE Energy Rentals (following its acquisition by Aggreko). SES's founders were the current senior management led by Mr Walid Ishak and Mr Ghassan Ayoub and Sakr Holding, a group of companies specialising in manufacturing power generation sets as well as implementation of turnkey power projects. Since its foundation, Mr Walid Ishak and Mr Ghassan Ayoub have successfully led the company and expanded its footprint to cover the UAE, Saudi Arabia, Qatar, Yemen, Oman, and Tanzania.
Commenting on the investment, Dr Karim El Solh, Chief Executive Officer of Gulf Capital said: "We are pleased to have acquired a controlling stake in Sakr Energy Solutions FZCO, a leading company in the temporary power industry in the region. The power sector represents a resilient and rapidly growing sector, not only in the MENA region, but also in South Asia and Sub-Saharan Africa. This investment follows our strategy of investing in defensive and fast growing sectors that benefit from the regional population growth, governmental infrastructure spending and rising GDP per capita.”