Hilal Cement acquires Gulf Readymix company; second Readymix acquisition in 2008 advised by GulfMerger

Gulf Readymix features a strong balance sheet with no bank debt and a cash balance in excess of KD600,000 which will remain in the company.

Established in 1977, Gulf Readymix is an established producer of readymix concrete focused on small-scale projects in Kuwait.

The company averaged an annual production of approximately 200,000 cubic meters and earnings before interest, taxes, depreciation and amortization of approximately KD500,000 in the last three years, respectively.

Gulf Readymix currently operates a single dry batching plant in Mina Abdulla and is shortly expected to begin the production of wet readymix with a new batching plant expected to be commissioned in the next three months.

Hilal Cement is today Kuwait's second largest cement company. Italcementi recently acquired a 51% equity interest in Hilal Cement in 2007.

The acquisition of Gulf Readymix by Hilal Cement follows the recent 100% acquisition of Kuwait German Readymix in February 2008. Collectively, Hilal Cement today controls in excess of a 6% share of the Kuwaiti readymix market.

GulfMerger advised Hilal Cement on the acquisitions of both Kuwait German Readymix and Gulf Readymix.

The acquisition of readymix companies by Hilal Cement is part of a new strategy aimed at creating an integrated building materials company in Kuwait and across the region.

Salah Al Tabtabei, Chairman of Hilal Cement said "we are pleased with the conclusion of these two readymix acquisitions in Kuwait which complement each other very well in terms of customer segments and geographic location, one being in Sulaibiya and the other in Mina Abdulla. There are a number of synergies which exist between these two companies which we will seek to realize".