Abu Dhabi-based Waha Capital has acquired a 49 per cent strategic stake in GMMOS Group, a major industrial group operating in the marine, oil and gas and crane-hire sectors.

This follows an agreement between Waha Maritime and Abraaj Capital, a premier investment firm specialising in private equity investment in the region.

Under the deal, Al Waha Maritime has acquired a 40 per cent stake from investors exiting the co-investment vehicle, and the remaining nine per cent from Abraaj Buyout Fund II (ABOF II).

The value of the deal has not been revealed.

Proceeds from the sale of the nine per cent ABOF II stake will be applied towards reducing the cost of the original Abraaj Capital investment, said a statement.

Waha Capital, which is pursuing a vision of diversified, multi-sector growth, made the investment in GMMOS Group through its wholly-owned subsidiary Waha Maritime. 

“This acquisition is in line with our strategy to build a significant regional maritime business alongside other businesses from our base in Abu Dhabi," said Waha Capital’s chief executive officer Samer Alhaj.

“As one of the leading suppliers to the offshore industry, GMMOS Group is uniquely positioned to meet the needs of companies active in offshore exploration and development in the Gulf and Caspian regions,” said Arif Naqvi, vice chairman and group chief executive officer, Abraaj Capital.

“There is a clear alignment between the growth strategies of GMMOS Group, which is rapidly expanding in the pan-regional offshore industry, and Waha Maritime, which is focused on expanding its shipping operations and presence in the offshore support industry. This strategic partnership will provide great benefits to both companies in meeting the needs of firms operating in the marine and oil and gas sectors,” Naqvi said.

In May 2007, Abraaj Capital, together with co-investors, acquired 100 per cent of GMMOS Group, through its $500 million ABOF II.

GMMOS Group comprises four well-established business divisions, which include Grandweld, the leading shipyard in the Gulf focusing on the Offshore Supply Vessel (OSV) segment; GMMOS Fabrication, an oil and gas specialised steel fabricator of pressure vessels and skid modules; Stanford Marine, a prominent OSV charter operator in the Gulf; and Gallagher, one of the largest mobile fleet operators in the UAE.

GMMOS has witnessed strong growth over the past few years across all its business divisions. This trend is expected to continue going forward, driven by sustained high oil prices, increased oil and gas-related spending, growth in the regional construction sector, and the overall economic growth in the region, said the company.

Waha Capital unveiled its strategy for diversified business growth in February this year when it announced its transformation from a single-business company into a holding company with four sector-specific subsidiaries: Waha Leasing, Waha Maritime, Waha Financial Services and Waha Land.

At the time, Waha Capital said it would pursue a strategy to drive multi-sector business growth and diversification through acquisitions, joint ventures and the creation of new businesses with investments worth Dh20 billion. – TradeArabia News Service