BAHRAIN: Bahrain-headquartered United International Bank (UIB), a Shariah-compliant investment bank, has announced the acquisition of the UK-based BWA Water Additives (BWA), a leading water treatment solution provider from Close Brothers Private Equity LLP.
Headquartered in the UK, BWA Water Additives has been operating for over 35 years with laboratories in the UK and US. The company is a world leader in the development and marketing of high performance specialty chemicals for water treatment.
Recently, the company experienced a period of continuous development including significant investment in infrastructure, new product development and human capital to further establish its business, with an operational structure and global platform.
According to UIB, Royal Bank of Scotland, HSBC, and the Royal Bank of Scotland Equity Fund provided the financing for the transaction.
BWA has developed a high performance product line to meet customer requirements in over 85 countries. The application portfolio is well placed in three attractive and high growth segments that include water desalination, industrial water treatment processes and secondary oil recovery. The company’s products are used to control and prevent corrosion of iron or steel, inorganic deposits on the surface of pumps and pipes and treat microbiological growth in process water, all of which represent significant operating issues for end users.
“BWA is a global leader, providing innovative and effective water treatment solutions. This acquisition will help UIB establish a presence in this important space and we look forward to exploiting the synergies of both companies to gain a competitive advantage,” Asaad Albanwan, chairman of the UIB board, said. “The global water treatment demand is forecast to significantly grow over the coming years and we feel very positively about investing in this sector,” he added.
“From a regional perspective, BWA has a significant presence in the Middle East and has positioned itself as the leader in the high performance chemicals sector for water treatment. This offers UIB the opportunity to support BWA in its drive through the next phase of growth,” Abdulla Janahi, UIB’s general manager and acting CEO, said. “Going forward, as articulated in the bank’s business strategy, UIB will continue to identify and invest in niche investment opportunities with the objective of achieving attractive returns for our investors,” Janahi added.
“We are extremely pleased to have partnered with UIB. This is an important milestone in the development of BWA. Taking into consideration the Middle East region and in particular the GCC economic growth and the dynamics in the water treatment market, it was imperative that we explored fresh funding to support our expansion plans and grow further. We believe that with their experience and knowledge of the region, UIB will be a valuable partner in growing BWA internationally,” David Cartmell, executive chairman and CEO of BWA, said.
