Orascom Construction has announced the acquisition of a leading company in the field of importing, distributing, and servicing equipment in Egypt.
It added that Orascom shareholders approved this acquisition at the extraordinary general assembly meeting held on 27 December.
The company’s board of directors recommended at a meeting early last week the acquisition for $35m.
Orascom Construction announced on 19 October that the board of directors had formally approved an evaluation of this potential acquisition.
A previous statement stated that the acquisition would allow Orascom Construction to expand in the services sector, and growth for the target company is expected as a result of the acquisition.
The target company was founded by Onsi Sawiris more than 30 years ago, which is wholly owned by the Sawiris family and operates independently of Orascom Construction, according to the statement.
The target company consists of three separate legal entities operating under one management: Orascom Trading Company, Orascom Free Zone Company, and the National Equipment Company.
The previous statement indicated that the target company manages the import, distribution, and maintenance business of equipment as the sole agent for more than 45 leading companies in the manufacture of the most demanded equipment in Egypt, including companies such as Grove, John Deere, Volvo Penta, Hitachi, and Mitsubishi Heavy Industries.
Orascom Construction works in the construction and engineering sector and focuses on the implementation of major infrastructure projects in the United States, the Middle East, Africa, and Central Asia.