Jadwa Investment completes a SAR 1.7 billion private equity exit
Riyadh, November 2019: Jadwa Investment, a leading regional investment management and advisory firm, announced today the completion of a SAR 1.7 billion trade sale exit for its Jadwa Industrial Waste Management Opportunities Fund following a holding period of five years. The private equity fund achieved its exit through the sale of its stake in Global Environment Management Services (GEMS) to the Saudi Investment Recycling Company (SIRC). The divestment transaction marks Jadwa’s third and largest private equity exit, and brings Jadwa’s aggregate private equity distributions to clients to over SAR 3.5 billion.
Tariq Al-Sudairy, Managing Director and CEO of Jadwa Investment, commented: “Our acquisition of GEMS in 2014 came following an extensive assessment that revealed high potential for growth in the industrial waste management space. We worked closely with the management of GEMS to realize the company’s growth potential and are now pleased to translate this into attractive investment returns for our clients. We certainly wish SIRC and GEMS management continued success in capturing the company’s next phase of growth, supported by the government’s sectoral development plans in the waste management space under Vision 2030.” Mr. Al-Sudairy added that Jadwa “continues to assess new investment opportunities in the private equity space across sectors that we believe will drive economic growth going forward and yield attractive returns.”
Saad Al-Saif, Jadwa’s Managing Director and Head of Private Equity and Investment Banking said: “The sale of GEMS marks another important milestone for Jadwa’s private equity practice. We are pleased to complete our third and largest private equity exit and are proud to have worked alongside the management of GEMS to achieve its full potential while creating value for our clients.”
Headquartered in Jeddah, GEMS is the leading provider of integrated industrial waste management services in Saudi Arabia, including, hazardous waste treatment, waste recycling, industrial turnaround services, and engineering maintenance services for the oil, petrochemical, and industrial sectors.
Over the past five years, GEMS grew its operations by expanding its business scope and geographic reach. This included initiating the operations of a new waste management facility in Yabnu that increased capacity by 30,000 tons/month, completing the construction of a new facility in Jubail, launching its industrial turnaround service, and expanding its engineering maintenance services into Bahrain.