Alpha Dhabi Holding, an Abu Dhabi-based investment holding company, has agreed to acquire a majority stake in Metito Holdings, a water and wastewater management solutions provider in the Middle East.
Alpha Dhabi is buying the stake from a consortium led by the UAE-based alternative investment firm Gulf Capital. The consortium also includes Japanese firms Mitsubishi Corporation and Mitsubishi Heavy Industries.
The move is in line with Alpha Dhabi’s portfolio diversification objective and marks its first deal in the water and wastewater domain, the company said Monday. It did not disclose the financial terms of the transaction.
Mitsubishi Corp and Mitsubishi Heavy Industries invested in Metito in 2014. Gulf Capital and the World Bank arm International Finance Corporation invested in Metito in 2006. It was one of Gulf Capital’s first investments.
The private equity firm currently manages over $2.3 billion in assets across seven funds. It has closed 45 investments since 2006 in growth markets with a focus on five broad sectors—technology and fintech, healthcare, business services, consumer, and sustainability.
The acquisition aligns with Metito’s objective to broaden its smart water solutions across the Middle East and North Africa and beyond. Metito has presense in over 50 countries, with 20 offices globally.
The water treatment company was set up in 1958 founded by Farouk Ghandour, who was joined by his brother Mutaz Ghandour in 1966. The Ghandour family will retain their leadership roles in the company.
Metito covers three business areas including, design and build, specialty chemicals, and utilities. It was the first company to introduce the reverse osmosis technology for desalination outside the USA in 1972 and has delivered water and wastewater projects in several countries including Saudi Arabia, Uzbekistan, the UAE, Egypt, Rwanda, Serbia, and Qatar.
The deal comes ahead of the UAE hosting the COP28 climate conference in November to drive climate action.
Alpha Dhabi said it has also established Alpha Dhabi Climate Capital, focusing on climate-conscious investments, in line with the upcoming COP28. The MENA region, home to 7% of the world’s population but just 1% of its freshwater resources, is the most water-stressed globally.
Alpha Dhabi was set up in 2013 and encompasses more than 150 businesses spread across healthcare, renewable energy, petrochemicals, real estate, construction and hospitality. It has over 90,000 employees. In the first half of 2023, Alpha Dhabi reported a 29% increase in its revenue and a 30% growth in its net profit.
Earlier this year, Alpha Dhabi partnered with Abu Dhabi sovereign wealth fund Mubadala Investment Company to co-invest in credit opportunities and collectively deploy up to $2.5 billion over the next five years. Mubadala owns 80% of the venture while Alpha Dhabi holds the remaining 20%.
