Red Sea Sells Stake in Premium Paints for $3.73 Million
Deal News | Jan 13, 2025 | Zawya
Red Sea International, through its subsidiary Red Sea Building Materials and Equipments Trading Co., has entered into a sale and purchase agreement to divest its entire 81% stake in the Saudi Arabian company, Premium Paints. The sale has an initial valuation of 14 million riyals ($3.73 million) and involves the transfer of 8,100 shares to the Saudi Industrial Paint Co. This move aligns with Red Sea's strategic objectives, while Sherwin Williams Cayman Islands Company Ltd, which holds the remaining 19% stake, is also a party to the agreement, with the final sale price subject to stipulations specified in the agreement.
Sectors
- Construction and Materials
- Manufacturing
Geography
- Saudi Arabia – The transaction involves Saudi Arabian companies, Premium Paints and Red Sea International, indicating the geographical relevance.
- Cayman Islands – Sherwin Williams Cayman Islands Company Ltd is a party to the agreement, highlighting the geographical involvement.
Industry
- Construction and Materials – Red Sea Building Materials and Equipments Trading Co. is involved in selling building materials, indicating the relevance of this sector to the transaction.
- Manufacturing – Premium Paints Company, being a paints firm, falls under the manufacturing industry.
Financials
- 14 million riyals ($3.73 million) – Initial sale value for the 81% stake of Premium Paints.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Red Sea Building Materials and Equipments Trading Co. | Selling Company | Company | A subsidiary of Red Sea International holding an 81% stake in Premium Paints. |
| Premium Paints Company | Target Company | Company | A paints firm being sold by Red Sea Building Materials and Equipments Trading Co. |
| Saudi Industrial Paint Co. | Bidding Company | Company | The company set to acquire Premium Paints from Red Sea Building Materials and Equipments Trading Co. |
| Sherwin Williams Cayman Islands Company Ltd | Other Company | Company | Holds a 19% stake in Premium Paints and is involved in the sale agreement. |