• Home
• /
• Business

Depa Acquires Carrara

DUBAI – Dubai-based interiors contractor Depa Ltd has wholly acquired stone producer Carrara Mid East Industrial Company, a move that is expected to help latter’s overseas expansion plans.

“This acquisition is another important step in our long-standing vertical integration strategy of acquiring leading suppliers in our core business markets,” Depa’s Managing Director of Investments Hadi El-Solh said in a statement on Sunday.

Depa did not provide the value of the deal, but the statement said UAE-based Carrara earned Dh150 million revenues in 2009. Carrara operates via its three facilities located in the UAE, which serve the Middle East, India, and Africa.

“Depa will provide the necessary support to continue Carrara’s international expansion drive to serve clients outside of Depa, in growing markets such as Saudi Arabia, India, and even Azerbaijan and Nigeria,“ El-Solh said.

The acquisition did not attract investors as Depa shares closed unchanged at 0.7 cents per share on Nasdaq Dubai. The interiors decorator received its shareholders’ approval last week to pursue a two-for-one stock split and to list its shares in UAE dirham instead of US dollars. The record date for the stock split is March 30.

The interior contracting company reported a 24 per cent jump in its net profit for 2009 to Dh241 million compared to Dh194.5 million in 2008.

The company continues to have a healthy contracted backlog, which stood at Dh2.1 billion as of December 31, 2009 compared to Dh2.7 billion by the end of 2008. The UAE accounts for over 55 per cent of all contract volume.

Carrara General Manager said, “The management team …. remains committed to all of its existing, and prospective, clients and suppliers.”

Established in 1977, Carrara was one of the first companies to establish a marble processing factory and import the highest quality marble in the region. Carrara has recently executed the supply and installation of about 120,000sqm of natural stone for the Burj Khalifa project.

Its work portfolio includes major regional and international projects such as Burj Al Arab, Royal Mirage Hotel, Mall of the Emirates, Dubai Festival City, Deira City Centre, The American Hospital Dubai, Yas Island Marina Hotel, Aldar headquarters, Turkmenistan Parliament Building, Presidential Palace and President Hotel.

abdulbasit@khaleejtimes.com