Dubai: Metito Holdings, Ltd. (Metito), provider of water management solutions in emerging markets, has entered into a strategic partnership with Japanese companies Mitsubishi Corporation (MC), Mitsubishi Heavy Industries, Ltd. (MHI) and Japan Bank for International Cooperation (JBIC), which will see significant investment into the company.
The partnership comprises a share purchase agreement with MC and MHI, which will acquire 38.4 per cent of Metito shares, predominantly from its existing shareholder Gulf Capital for an undisclosed sum.
JBIC will also subscribe as a preference shareholder, providing Metito with additional funds of up to $92 million to fund growth opportunities. This investment aims at supporting overseas business deployment of Japanese companies, establishing a strategic partnership between the MC, MHI and Metito.
“Metito is already well poised to tap into projects of various scales, and this partnership, in addition to the investment by JBIC, will expedite the company’s growth through creating new opportunities and allowing us to become more competitive, globally,” said Mutaz Ghandour, CEO, Metito.
The deal will see MC and MHI together acquire a total of 38.4 per cent stake in Metito, and both Gulf Capital and the International Finance Corporation (IFC) — a member of the World Bank Group — continue holding 23.8 per cent and 3 per cent of Metito, respectively.
“This investment creates a compelling strategic partnership capitalising on our global network and corporate capabilities and Metito’s unique value proposition,” said Masaji Santo, Senior Vice President, Division Chief operating officer of Mitsubishi Corporation.
Already established as a profitable entity, since Gulf Capital’s initial majority investment in Metito in 2006, the company increased its net profitability by 661 per cent. It further strengthened this position as a leading provider in the global water and wastewater industry, registering an annual compound growth rate of 17 per cent in revenues and 33.6 per cent in net profits over the last eight years.
“This strategic investment into Metito by MC, MHI and JBIC is a reflection of the success of the management team and the Ghandour family,” said Karim El Solh, CEO and Managing Partner of Private Equity at Gulf Capital and serving Chairman of the Board of Metito.
The deal is expected to strengthen the ties between the Middle East and Japan in the water and wastewater industry. “This is a synergistic partnership with Metito’s strengths enhancing ours and vice versa. Working together will enhance MHI’s business and open many new opportunities, particularly in the emerging markets,” said Yoichiro Ban, Senior General Manager, MHI.
