Abraaj acquires majority stake in Septech Emirates

Sharjah-based Septech specialises in design and manufacture of water & waste treatment plants and pre-cast concrete infrastructure products. The company now plans to expand its business across the GCC, which is witnessing a construction boom. David Heffernan, who founded Septech in 1997 and who will continue to stay as the chief executive and a substantial shareholder of the company, said that the buyout by Abraaj would accelerate the wastewater treatment company's growth and help it to emerge as the regional market leader in the next few years.

"The partnership with Abraaj is a natural step in Septech's evolution that is in line with the company's plans for expanding beyond the UAE, pushing for growth across the region. We have already started serving clients in Oman and Qatar and with this new relationship, we expect strategic inputs from Abraaj to support the Septech management team in making us a regional market leader in the near future," Heffernan noted.

Humayun Shahryar, executive director and head of direct investments at Abraaj Capital, said that the acquisition of Septech was made through the Abraaj Buyout Fund and also added that the acquisition marked the first foray of the private equity firm into the region's burgeoning sewage and wastewater treatment sectors.

Shahryar pointed out that the rapid growth of population combined with water shortages, increasing environmental awareness and congestion in the main municipal sewage networks has put a tremendous demand on the wastewater treatment business in the region. He said this sector is also becoming one of the top priorities of governments as well as for businesses across the GCC.

"Septech is an exceptionally well-managed business in a fast-growing sector of the economy. With its proprietary technology and years of experience in manufacturing decentralised sewage treatment plants, the company is ideally placed to deliver a high-value added solution to the wastewater treatment and disposal problems faced across the GCC," he added.

Apart from sewage treatment and related technologies, including domestic and commercial wastewater treatment plants, Septech specialises in pre-cast concrete Infrastructure products, Operation & Maintenance and an exciting new Biotech anti-odour chemical division. Capitalising on its expertise in pre-cast concrete, the company has also established a joint venture with Bellingham Marine, one of the world leaders in marinas, for manufacture and sale of concrete pontoons across the GCC.

Abraaj has been very successful in enhancing the profitability of its portfolio companies. The private equity major has generated a phenomenal track record of returns for its investors by exiting various holdings with significant profits.