The Saudi Arabian house supplier ‘Red Sea Housing Services’ has announced acquiring the Malaysian designer and manufacturer of prefabricated modular buildings ‘AM Modular’.
The acquisition is considered the first of its kind for Red Sea in the Asian market. The deal poses a significant expansion for the company’s operation, according to a statement published by the company.
The acquisition value is 26.2 million riyals including a down payment of 11.2 million riyals to be made this year.
The remaining value of the deal will be paid during the next three years to constitute 90% of AM Modular’s shares.
The acting CEO of Red Sea Housing Services ‘Don B Summer’ said that the acquisition will boost the company’s expansion in the Southeast Asian market.
He said also that the acquisition fits the company’s innovation strategy thanks to AM Modular’s unconventional construction technology.
From his side, the CEO of AM Modular said that the acquisition will allow Red Sea to have a stronger presence in Australasia Region and will enable it from offering faster deliveries to all its clients.
It’s worth mentioning that Red Sea expected its annual revenues of this year to increase by 100 million SAR after this acquisition which was funded by the company’s existing cash flow.