Saudi-based alfanar group is said to be close to finalising procedures for the acquisition of Germany-based Heinrich Kopp from Luxembourg-based private equity fund Palero Invest.

The move comes in line with alfanar’s strategy to strengthen and expand its  global presence.

Headquartered in Riyadh, alfanar is a major player in the electrical manufacturing business as well as related engineering services, while Heinrich Kopp is one of the leading companies in Europe for electrical installation products including switchgear.

The acquisition will include all of the company’s operations across Europe including facilities in Wijchen (the Netherlands) and Vienna (Austria) as well as the main manufacturing centre at Kahl am Main, Germany. Also covered in the takeover is an operation in Tunisia.

On the acquisition move, alfanar group chairman Abdulsalam Al Mutlaq said: “This comes at a time when alfanar is aggressively involved in expanding its product portfolio and markets as well as reaching out to new markets.”

“Through this acquisition, alfanar will have further access to European markets and enhance its industrial capabilities in the kingdom,” stated Al Mutlaq.

Upon completion of the deal, the Saudi firm will also transfer the complete workforce of Heinrich Kopp, adding to its already 22,000-strong employees.

From a modest start in 1976, alfanar has grown through the years to become one of the strongest companies in electrical manufacturing. Its range includes the manufacturing of all electrical products for the construction industry and related engineering services. It operates factories in the Middle East, Asia and Europe and several design and development centres.

The company is also involved in the development and construction of renewable and conventional power as well as in providing ancillary engineering services.