Sustainable Infrastructure Holding Company (SISCO), listed on the Saudi Stock Exchange, announced the successful completion of its strategic acquisition of a 51% majority stake in Ports and Warehousing Services Company Limited (PSS), in a move aimed at strengthening its position in the Kingdom’s logistics and ports sector.
Deal details and financial structure
According to the company's statement, the total value of the transaction was SAR 132.6 million. The payment structure was designed to ensure efficient cash flow, with the agreement including an immediate cash payment of SAR 91.8 million. In addition, a further contingent payment (earn-out) of up to SAR 40.8 million was agreed upon, directly dependent on the acquired company achieving specific financial and operational targets over the next two years, reflecting Cisco's confidence in PSS's future growth potential.
Strengthening presence in the logistics sector
This acquisition comes at a time of rapid growth in Saudi Arabia's logistics and ports sector, driven by the goals of Vision 2030, which aims to transform the Kingdom into a global logistics hub connecting three continents. Cisco is a leading company in this field, with a diversified investment portfolio that includes port operations, logistics services, and water solutions.
Port and Warehousing Services Limited (PSS) is a valuable addition to Cisco’s portfolio, as it will contribute to the integration of the value chain offered by the group, enhancing its ability to provide comprehensive solutions to its customers in the maritime transport and warehousing sector.
Financial impact and funding
Cisco confirmed that the acquisition was fully financed through its own cash resources, reflecting the company's strong financial solvency and its ability to finance its capital expansions without the need to increase external financing burdens at this stage.
Regarding the financial impact on the group’s financial statements, the company explained that the financial statements will be consolidated and the results of the Ports and Warehousing Services Company Limited (PSS) will be fully incorporated into Cisco’s statements starting from the first quarter of 2026, which is expected to positively impact the company’s revenues and profitability in the medium and long term.
Context of the event
It is worth noting that the company had announced via the Saudi Stock Exchange website on October 1st the signing of the sale and purchase agreement, and these efforts culminated today with the completion of the regulatory procedures and the transfer of ownership, which opens new horizons for growth and expansion in one of the most vital sectors in the Saudi economy.
