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Standard Chartered Private Equity (SCPE) has acquired a minority stake in Construction Products Holding Company (CPC) through an equity investment of US$75mn.
CPC is Saudi Arabia's largest manufacturer and provider of building materials and a subsidiary of the Saudi Bin Laden Group (SBG).
CPC provides up to 80 per cent of the building materials required for mega construction projects throughout Saudi Arabia and will use the proceeds for expansion purposes, the company said in a statement.
As part of its investment, SCPE will be granted a board seat and will provide strategic insight on CPC's capital structure and expansion into new markets.
This deal represents SCPE's first investment into the Kingdom. SCPE is actively seeking opportunities across the Kingdom and the rest of the Middle East, it said.
Taimoor Labib, managing director and regional head of MENA private equity at SCPE, said: 'CPC is an exemplary blue chip company and we are delighted that they have chosen us as their long-term partner. They enjoy a dominant market share in the Saudi Arabian building materials construction market and are led by one of the strongest management teams in the Kingdom."
Mu'taz Sawwaf, CEO, CPC, said: "The Saudi Bin Laden Group is excited about its new partnership with Standard Chartered Bank. We look forward to SCPE's partnership as we experience robust growth in our existing footprint and in new markets."
