Jadwa Investment, a major Saudi private equity house and investment bank, has announced the acquisition of a majority stake in Saudi Mechanical Industries (SMI) by the Jadwa Mechanical Opportunities Fund along with Arab Petroleum Investments Corporation (APICORP).

Headquartered in Riyadh, SMI is a Saudi engineering company engaged in manufacturing a variety of products with a focus on fluid flow and control equipment. The product range includes engineering components, pumps, gear drives, and steel and bronze bars for use in a broad array of industries, including oil and gas, infrastructure, automotive, agriculture and mining.

The company, which was established in 1982, today employs over 800 professionals, working with more than 290 clients across Saudi Arabia, the United States, Europe, and the MENA region.

“We are very pleased to announce our investment in SMI and to have APICORP as our investment partner,” said Tariq Al-Sudairy, MD & CEO of Jadwa Investment. “We see considerable regional and global demand for engineering components across a range of strategic industries, including oil and gas, mining, infrastructure, original equipment manufacturing, automotive and agriculture. We also see significant local opportunity in the ongoing drive to localize the manufacturing of many engineering components in line with the Kingdom’s National Industrial Strategy.”

Raed Al-Rayes, deputy chief executive and GM of APICORP, said: “APICORP is very pleased to add SMI to its investment portfolio We look forward to working with Jadwa Investment and with SMI’s management to expand SMI’s oil and gas business.”

SMI’s CEO Tameem Al-Shebel said: “We are excited to have Jadwa and APICORP among our shareholders and believe they will contribute greatly to SMI’s future development.”

The investment in SMI marks Jadwa’s eighth private equity deal and follows a series of successful milestones in the company’s private equity business.