Muscat: Investcorp’s portfolio company, NDT Corrosion Control Services Co. (NDT CCS), on Sunday announced the acquisition of a majority stake in Hi-Tech Inspection Services, Oman’s largest provider of industrial non-destructive testing (NDT) and inspection services.
Hi-Tech’s founders, Al Sulaimi Group Holding, established the company in 1996, according to a press release.
Investcorp acquired a majority stake in NDT CCS in July 2015 from the Al Shuwayer Group, which founded the company in 1975 and retains a minority stake, alongside Investcorp. Under Investcorp’s ownership, NDT CCS has solidified its market leading position and expanded its operations, both organically in its core markets and inorganically as a result of its acquisition of Hi-Tech.
Hi-Tech offers a complete range of non-destructive testing, post-weld heat treatment and specialised inspection services to clients in Oman engaged in oil and gas, manufacturing and construction sectors. Hi-Tech employs over 600 specialised technicians and has an estimated market share of over 35 per cent in Oman.
“The two companies are leaders in their respective markets and jointly have the largest pool of specialised NDT and inspection technicians in the GCC, so we believe we instantly benefit from synergies and greater scale. Beyond access to Oman, Hi-Tech also brings certain specialised services that NDT CCS had not been providing until now. NDT CCS and Hi-Tech share ambition and technical skill, and we at Investcorp are looking forward to working with the expanded management team to maximise the company’s potential,” said Mohammed Alardhi, Executive Chairman.
“This is the first major investment for Investcorp’s portfolio company in Oman, and we are confident that Hi-Tech will be a natural fit for NDT CCS. Investcorp will lend its operational and financial expertise, with the objective of helping the combined company create new growth opportunities in Oman, Saudi Arabia, and the rest of the GCC,” added Harsh Shethia, managing director at Investcorp in Oman.
“Over the past 20 years, we have built Hi-Tech into Oman’s leading NDT and inspection services company. It is the right time to bring on a strategic investor to provide the depth and market position to allow us to grow across the GCC. NDT CCS and its sponsor, Investcorp, offer regional growth opportunities that meet the ambitions and capabilities of Hi-Tech. We at Al Sulaimi Group Holding look forward to working with our new partners in the years ahead,” said Haitham Al Fannah, chief executive officer of Al Sulaimi Group Holding.