Dubai, 28 August 2010 – Depa Limited (ticker DEPA) (‘Depa’ or ‘the Company’), one of the world’s leading interior contracting companies, today announces the acquisition of Design Studio Furniture Manufacturer Ltd (‘Design Studio’) for a total consideration of S$108.7 million (AED295 million). Depa recently increased its stake in Design Studio from 24.7% to 90.5%, having bought its first stake in 2006. The acquisition values Design Studio at S$165.9m (AED449 million).
Design Studio is a Singapore-based product and fit-out interiors specialist company, active principally in Southeast Asian markets. It is a Singapore incorporated public company on the Main Board of the SGX-ST (ticker D11.SI). Over the past three financial years, Design Studio has recorded a compounded annual growth rate (CAGR) of 22.1%, 35% and 70.3% for its revenue, gross profit and net profit after tax respectively.
Mr Mohannad Sweid, CEO of Depa, commented:
“This acquisition is another key element in our long term diversification plan, giving us greater exposure to the Southeast Asian markets, where we see significant opportunities. The complementary fit between our interior contracting business and Design Studio’s expanding business will allow us to further win and deliver new projects in the Far East. Design Studio has a strong order book at S$183m as of 30 June 2010, and pipeline of new projects and we are excited about the long-term outlook.”
In 2008, Depa and Design Studio launched their joint-venture company DDS Contracts & Interior Solutions Pte Ltd (‘DDS’), with Depa holding 55% and Design Studio 45% respectively.
The combined Design Studio and DDS businesses will continue to be lead by Bernard Lim, the current CEO, with the rest of the management team remaining in situ.
Mr Bernard Lim, CEO of Design Studio and DDS, added:
“This acquisition will aide Design Studio in meeting the rising demand from overseas markets and the strong supply of residential properties, hotels, and resorts being currently built throughout the region. We are excited to be strengthening our partnership with Depa and look forward to witnessing our joint success over the coming years.”
Mr Hadi El-Solh, Managing Director of Investments at Depa, added:
“Following its formation, DDS went on to sign the largest ever interior contract in Singapore, demonstrating the potential and power of this partnership. Working with Design Studio over the past few years in these capacities has allowed us to see their potential and future in the area. As an already trusted and proven partner, we are looking forward to growing our presence with Design Studio in the Far East market, an important part of Depa’s long-term growth plans.”
Design Studio’s completed projects include: Marina Bays Sands Singapore®, Resort World at Sentosa, The Sail@Marina Bay, The Cosmopolitan, Singapore; William Beaver House(NYC), Trump International Hotel Tower (Las Vegas), United States; Tokyo Midtown Roppongi, Brillia Tower, Japan and Yas Hotel, Abu Dhabi and Intercontinental Hotel, DIFC, UAE.
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For further inquiries, please contact:
Depa Limited
Noor Sweid
Managing Director, Strategy
Tel: +971 4 224 3800
Brunswick Gulf Ltd
Azadeh Varzi / Jade Mamarbachi
avarzi@brunswickgroup.com / jmamarbachi@brunswickgroup.com
Tel: + 971 4 365 8260
Depa Limited is a leading interior contracting company in the Middle East, North Africa and Southeast Asia regions. Operating principally in the luxury fit-out industry, its main areas of business cover luxury hotels, infrastructure and public sector amenities such as hospitals and airports, high-end residential properties, retail outlets, as well as yachts. Depa is listed on the NASDAQ Dubai (ticker DEPA) and has Global Depositary Receipts on the regulated market for listed securities of the London Stock Exchange plc (ticker DEPA and DEPS).
The range of business activities performed by Depa comprises:
· Interior contracting : which focuses on luxury interior fit-out services, which include installation and finishing of floors, walls, ceilings, fixed joinery, panelling, wood-works, doors and frames;
· Manufacturing : which comprises a network of factories and joineries which produce customized furniture, fixtures and equipment (FF&E);
· Procurement : which involves the procurement of supplies and materials from third parties to support and complement Depa's interior contracting and manufacturing operations as well as third party procurement contracts for specific FF&E projects.
By integrating these services into a single package, Depa provides clients with comprehensive and customized interior contracting solutions.
With more than 8,000 employees worldwide, the company operates through an integrated network of subsidiaries, affiliates and representative offices located in the UAE, Saudi Arabia, Qatar, Egypt, Jordan, Syria, Libya, Morocco, India, Malaysia, Thailand, China, Singapore, UK, the Netherlands, and the United States. Through this network, Depa has successfully executed large and complex projects in over 16 countries including the Burj Al Arab Hotel (Dubai), Emirates Palace (Abu Dhabi), the Museum of Islamic Art (Doha), Four Seasons Hotels (Sharm El Sheikh & Mumbai) and Mazagan Resort (Casablanca).
For more information, please refer to the corporate website: www.depa.com
About Design Studio Furniture Manufacturer Ltd (Bloomberg Code: DSFM SP)
Design Studio has three complementary and versatile core businesses namely the supply and installation of manufactured furniture to private residential developments, the provision of interior fitout services to hospitality and commercial projects and the distribution of renowned imported products in Singapore and export of two premium in-house brands of products to overseas markets.
In addition, Design Studio has a core competitive advantage as a specialist in the area of paneling and thermoformed products. It is able to provide its clients with key advice from planning to the execution stages of each project on designs, material usages and costs. Design Studio has completed projects for residential and commercial developments in various countries around the world. With high-end luxury residential and hospitality projects for Scotts Square, Hilltop @ Cairnhill, Reflections at Keppel Bay, Rihan Heights and Marina Bay Sands Integrated Resorts under its belt, Design Studio has created a niche in the premiere segment of this industry.
Design Studio has won Singapore Prestige Brand Award – establish brand category in 2008.
For more information, please refer to the corporate website: www.designstudio.com.sg
