Jadwa Investment, a leading regional investment management and advisory firm, announced Sunday completing a SAR1.7 billion ($450 million) 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 its aggregate private equity distributions to clients to over SAR3.5 billion ($933 million).
“Our acquisition of GEMS in 2014 came following an extensive assessment that revealed high potential for growth in the industrial waste management space,” said Managing Director and CEO of Jadwa Investment Tariq al-Sudairy.
“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.”
Jadwa’s Managing Director Saad al-Saif, head of private equity and investment banking, said the sale of GEMS marks another important milestone for Jadwa’s private equity practice.
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 Yanbu 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.