United International Bank, a Bahrain-based Shari’a compliant investment bank, said it has acquired the UK-based BWA Water Additives, a leading water treatment solution provider from Close Brothers Private Equity.

Financing for the transaction was provided by Royal Bank of Scotland, HSBC  and the Royal Bank of Scotland Equity Fund. The transaction was structured in accordance with the Islamic Shari’a principles, said a company official.   

Headquartered in the UK, BWA Water Additives has been operating for over 35 years with laboratories in the UK and USA and is a world leader in the development and marketing of high performance speciality chemicals for water treatment.

The company has developed a high performance product line to meet customer requirements in over 85 countries.

The application portfolio is well placed in three attractive and high growth segments: water desalination, industrial water treatment processes, and secondary oil recovery.

Commenting on the acquisition, UIB board chairman Asaad Albanwan, said, '“BWA is a global leader, providing innovative and effective water treatment solutions. This acquisition will help UIB establish a presence in this important space and we look forward to exploiting the synergies of both companies.'

'The global water treatment demand is forecast to significantly grow over the coming years and we feel very positively about investing in this sector,' he observed.

Abdulla Janahi, UIB’s general manager and acting chief executive officer, said: “From a regional perspective, BWA has a significant presence in the Middle East and has positioned itself as the leader in the high performance chemicals sector for water treatment.'

'This offers UIB the opportunity to support BWA in its drive through the next phase of growth. Going forward, as articulated in the Bank’s business strategy, UIB will continue to identify and invest in niche investment opportunities with the objective of achieving attractive returns for our investors,” Janahi added.

Dr. David Cartmell, executive chairman and chief executive officer of BWA said: 'We are extremely pleased to have partnered with UIB. This is an important milestone in the development of BWA.'

'Taking into consideration the Middle East region and in particular the GCC economic growth and the dynamics in the water treatment market, it was imperative that we explored fresh funding to support our expansion plans and grow further. We believe that with their experience and knowledge of the region, UIB will be a valuable partner in growing BWA internationally,” he added.

BWA had recently experienced a period of continuous development including significant investment in infrastructure, new product development and human capital to further establish its business, with an operational structure and global platform.

Its products are used to control and prevent corrosion of iron or steel, inorganic deposits on the surface of pumps and pipes and treat microbiological growth in process water, all of which represent significant operating issues for end users.-TradeArabia News Service