Dubai: Al Futtaim Auto & Machinery Co (Famco), the Al Futtaim Group's distributor of commercial vehicles and industrial equipment, has announced the acquisition of 100 per cent shareholding of Al Rehab Equipment & Machinery Company in Saudi Arabia, the exclusive distributor for Volvo Construction Equipment in the Kingdom.
Support was provided by Emirates Investment Bank in Dubai, acting as financial advisors to the buyer.
Famco, which is already the Volvo Construction Equipment distributor for the UAE, has made this move as part of its wider regional expansion programme. Famco's entry into Saudi Arabia will position the leading construction equipment distributor to play a significant role in the Kingdom's infrastructure development. The acquisition will extend Famco's reach in Saudi Arabia across five locations, with the main branch in Jeddah.
Len Hunt, President, Al Futtaim Automotive said: "Famco already has an enviable reputation in the region, but this has come solely from its development in the UAE. Now it has the opportunity to take its excellent standards to a new audience."
Volvo Construction Equipment awarded Famco with its Silver Partnership award in May 2011 recognising the high dealer standards within the organisation. Jonas Gardetun, Vice President, Volvo Construction Equipment said, "We are looking forward to working with Famco in Saudi Arabia, as we look to grow and increase our market share in what is a rapidly expanding market."
Paul Floyd, Managing Director, Famco said, "We are known in the UAE as a company that takes pride in working closely with fleet operators, providing high levels of customer service and expert advice. Now we can bring these qualities to the Saudi market where we believe we have much to offer. Saudi Arabia is leading the construction boom in the region and our aim is to set a new benchmark there. We very much look forward to the challenge of developing our operations in Saudi Arabia."
Famco is a distributor of leading industrial and construction brands such as Volvo Trucks, Volvo Buses, and Volvo Construction Equipment, together with Merlo telehandlers, Linde material handling equipment, Dexion industrial storage systems, Ingersoll Rand air compressors and tools, Yanmar power products and Himoinsa generators.
The company is known in the UAE and the region for its customer focused approach and for the strong support it provides through its service and parts network. It has bases in Dubai, Abu Dhabi, Al Ain and Ras Al Khaimah and in 2011 started operations in Oman and Qatar.
