Drake & Scull buys Riyadh-based civil construction firm; current project portfolio at $2.26bn
Drake & Scull International said it has acquired a Riyadh-based civil construction firm for AED128m ($34.13m), as the Dubai-based contractor pushes to expand operations in Saudi Arabia.
International Centre for Contracting Co (ICC), which also has offices in Jeddah and Dammam, has a backlog of AED800m, Drake said in a statement on Wednesday.
This is the second acquisition by Drake in Saudi after it bought 65 percent of Drake & Scull International Saudi WLL for AED243m in November last year.
"With the last acquisition DSI's current project portfolio stands at AED8.3bn ($2.26bn)," Khaldoun Tabari, CEO of DSI said in the statement.
Drake, which specialises in mechanical, engineering and plumbing businesses (MEP), has been rapidly expanding its operations outside Dubai, where house prices have plunged some 60 percent since their peaks in 2008 as a result of the financial crisis.
Drake said that its project wins in Oman, Egypt and Saudi Arabia combined valued to AED2.62bn in the first quarter of the year.
About 49 percent of the company's current backlog is in Saudi Arabia. Drake shares closed 0.9 percent lower on the Dubai bourse.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.