RAK Ceramics fully acquires Saudi JVs
(10/10/2018 6:40:00 AM)
UAE-based RAK Ceramics, one of the largest ceramics brands in the world, has acquired the remaining minority shares of its joint ventures in Saudi Arabia. The company now fully owns its operations in the kingdom.
Over the last few years, RAK Ceramics has been consolidating its global operations and this latest purchase follows acquisitions in Europe, India, and Australia, said a statement from the company.
Europe and Saudi Arabia are the company's major export markets, followed by the Middle East, Africa, and Asia Pacific, it said.
In 2017, around 31.7 per cent of its tile and sanitary ware sales originated from the UAE and 68.3 per cent was the result of its export operations to different regions around the world, it added.
Saudi Arabia is already an important export market for RAK Ceramics and with the kingdom's 'Saudi Vision 2030' already under way the future growth in the region looks promising, it said.
Abdallah Massaad, group chief executive officer, RAK Ceramics, said: “We are pleased to have fully acquired our joint ventures both in Riyadh and Jeddah, enabling us to gain greater control and access into one of our key markets.”
“We are excited about strengthening our global brand in Saudi Arabia and operating as a single corporate entity across the kingdom, reporting directly into our global headquarters in Ras Al Khaimah,” he said.
“This latest acquisition is a positive step for us and we are looking forward to fully integrating our Saudi operations. These recent acquisitions reaffirm our commitment to strengthening our core business interests in line with our ‘Value Creation Plan’,” he added.
Taking control of its distribution operations in core markets is a key part of RAK Ceramics' Value Creation Plan (VCP). The VCP was initiated in 2014 and designed to unlock hidden value in the business by offloading non-performing businesses and generating cash to reinvest, streamlining company operations, gaining greater control over its distribution networks and uniting RAK Ceramics as one company and one brand, with a single global corporate brand identity, it stated.