UAE conglomerate Dubai Investments said one of its investments subsidiaries, Masharie, has sold a strategic equity stake in Anchor Allied Factory, a leading integrated producer of adhesive tapes and spray paints, to Saudi-based Alkhabeer Capital.

A boutique investment banking firm in Jeddah, Alkhabeer Capital said the acquisition will help Anchor Allied further expand its footprint within Saudi and also focus on growth opportunities through vertical as well as horizontal integration.

The investment was made through Alkhabeer's asset management private equity division.

Established in 1993, Anchor Allied is one of the largest integrated producers and suppliers of adhesive tapes, silicone sealants and spray paints in the Middle East.

The company has a large distribution network selling its products in over 43 countries including all GCC countries, the Indian Sub-Continent, Eastern Europe, the US, African countries and CIS countries.

The investment is another cross-border M&A which has seen the flow of funds between the Arab countries and is testimony to the potential partnership opportunities existing in the region for investors and entrepreneurs, said a senior official.

Hussain Nalwala, the co-founder and executive director of Anchor Allied said, "Since formation in 1993, Anchor Allied has successfully built a strong regional adhesives and sealants business."

"We shared an excellent partnership with Masharie for the last 4 years and would like to thank them for their support. We are very excited to have Alkhabeer as our new partners and we look forward to creating similar value for our new shareholder," he added.

Commenting on the sale, Khalid Al Jarwan, the general manager, Masharie said, "Our partnership with the Nalwala family was very successful; Anchor Allied has become one of the leading sealants and adhesives manufacturers in the Middle East with tremendous growth potential."

"We are proud to have been able to contribute to its success and wish both the Nalwala family as well as Alkhabeer Capital all the success in the future," he added.

Alkhabeer Capital executive director and CEO Ammar Shata said the investment in Anchor Allied goes in line with its corporate and private equity strategies.

“The Nalwala family has built a great business in the past decades. I am confident of the attractive future awaiting Anchor Allied in the coming years and look forward to a fruitful partnership with them  to achieve the company’s anticipated growth potential," Ammar remarked.

Al Khabeer is a key provider of financial products and services to institutions, family groups and also provides qualified investors access to allocate capital into Shari’a compliant opportunities. Its shareholders include prominent business groups from Saudi and GCC.-TradeArabia News Service