Petronash Global to be acquired by Saudi Arabia's Bawan

Saudi building materials manufacturer Bawan is set to acquire UAE-based engineering company Petronash Global, following the signing of a binding MoU that values Petronash at USD 175 mn, according to a disclosure to Tadawul. The two companies are expected to sign a sale and purchase agreement by 30 September, according to the disclosure.

Sale terms: Bawan will initially purchase 80% of Petronash’s shares for USD 80 mn. An additional payment of up to USD 60 mn will be contingent on Petronash meeting financial targets over the next three years. The remaining shares will be acquired after Petronash’s 2027 and 2028 financials are published, based on an agreed valuation method.

Leadership post-acquisition: Petronash’s founder will retain the role of chairman for three years following the completion of the sale, alongside his senior executive management team.

About Petronash: Founded in 2000 in the UAE, the company specializes in manufacturing engineered packaged solutions for players in the oil and gas sector. The company operates in the GCC and exports to Africa, the Far East, and the Americas, with a manufacturing area of 120k sqm across facilities in Saudi Arabia, the UAE, Qatar, and India.

ADVISORS- Piper Sandler is advising Petronash on the acquisition, while Bawan has tapped PwC for financial advisory services.