The inspection and certification company Applus + has acquired the entire capital of the Saudi group SAFCO, which includes the companies Soil and Foundation Company Limited and Geotechnical and Environmental Company, for an initial payment of 30 million dollars (about 25 million euros) free debt and cash.
The operation contemplates a variable payment that would be effective in 2023 and that will be subject to the fulfillment of certain financial objectives, Applus + has informed the National Securities Market Commission (CNMV).
SAFCO is one of the largest and oldest inspection and testing companies in Saudi Arabia, with more than 40 years of activity, and is specialized in conducting construction materials testing, both on site and in the laboratory, and drilling services of soils and inspections and environmental consulting.
The Saudi group, with sixteen laboratories in the country, achieved revenues of around 35 million dollars last year (29 million euros at the current exchange rate) and has continued to record profits during the first nine months of 2020, despite the impact of the coronavirus pandemic.
The executive vice president of the Applus + Energy & Industry Division, Ramón Fernández Armas, assures in a statement that the SAFCO group “is a solid, profitable and successful business in the attractive construction market, in a country that has many projects planned. including Saudi Arabia’s Vision 2030 megaprojects “.
“We are delighted to welcome the employees of the SAFCO group to Applus +. This acquisition will help us to continue diversifying the business in markets with growth potential and that fit into the Applus + strategy”, highlights the CEO of the Spanish firm, Fernando Basabe.
This operation culminates an intense year for Applus + in terms of acquisitions, two of them closed before the start of the pandemic and another four in the last two months, representing close to 250 million euros of investment.
In this case, the initial payment will be made at the close of the acquisition, which is expected for the first quarter of 2021.
Applus + currently operates in more than 70 countries and has a workforce of more than 23,000 employees. In 2019 it obtained revenues of 1,778 million euros and an adjusted operating result of 197 million euros.