Bahrain-based investment firm Investcorp announced that it has bought the majority stake in NDT Corrosion Control Services Co, a Saudi Arabia-based testing services firm for the industrial sector.
The value of the deal was not disclosed.
Investcorp acquired the stake in NDT CCS from its founder Al Shuwayer Group, which will retain a minority stake alongside Investcorp post the deal.
NDT CCS, which also has operations in the UAE and licences to operate in Kuwait and Qatar, provides non-destructive testing services for industrial sectors such as oil and gas, petrochemicals, mining, nuclear and utilities.
NDT services include evaluation and testing of pipes, valves, oil platforms and other key industrial components and identifying faults, cracks or defects without causing damage. These services are also required during both the construction and the maintenance of sites and facilities, a statement said.
Some of the company’s clientele include Saudi Aramco, SABIC, Ma’aden, Saipem and Hyundai Heavy Industries.
The company has three branches across Saudi Arabia and one branch in the UAE with 12 sites across both countries.
“NDT CCS has firmly established itself as Saudi Arabia’s market leader in the non-destructive testing industry,” said Investcorp’s Co-CEO Mohammed Al-Shroogi.
“We believe that the company is well-positioned to solidify its leading position and gain a greater market share in a sizable, growing and fragmented industry. Investcorp will support the company to grow its existing business in the UAE as well as expand into Kuwait and Qatar.”
He added that Investcorp will use its experience with a similar firm Moody International to improve NDT CCS’s operations.
The deal is Investcorp’s fifth acquisition in Saudi Arabia. The firm has previously invested in Leejam, the owner and operator of the fitness chain Fitness Time, car rental business Theeb, industrial services outsourcing firm Al Yusr Industrial Contracting Company and L’azurde, a designer, manufacturer and distributor of gold jewellery.
Founded in 1982, the Bahrain-based private equity house has completed a number of major transactions this year.
Earlier this year, Investcorp acquired Nobel Learning, a private US school network in partnership with Bahrain state-fund Mumtalakat for an undisclosed sum.