DSI makes move into overseas water market
Local giant buys 82% stake in Germany's Passavant Roediger
Dubai firm Drake & Scull International (DSI) has bought an 82% stake in German water, wastewater and sludge treatment outfit Passavant Roediger.
The European company’s main activities include engineering and technical services for worldwide wastewater treatment plants (WTPs) and sludge digestion plants, turnkey plants for municipal and industrial wastewater treatment, and the provision of advanced equipment for aeration, mechanical sludge thickening and dewatering.
DSI has paid US$39.5 million for the stake; the remaining 18% is owned by Bilfinger Berger.
“This is a strategic acquisition that realises the company’s plans for both vertical and horizontal expansions,” said DSI CEO Khaldoun Tabari.
“It gives DSI vertical expansion by adding to the services that the company offers, and horizontal expansion through opening new markets and providing the company with a larger geographical reach.
“The engineering projects taken by Passavant-Roediger will also generate revenues for DSI’s other business streams including MEP and Civil Contracting, as wastewater and water treatment plants require engineering, procurement and construction disciplines, which can be accumulatively provided by DSI,” Tabari added.
Passavant-Roediger currently operates in, Romania, Hungary, Poland, Croatia, Germany, Algeria, UAE, Turkey and China with projects around the world including Algeria, Jordan, Lebanon, Egypt, UAE and Saudi Arabia. The company’s current backlog stands at over $122.5 million.