Private equity group Abraaj has bought a majority stake in Mouka, a Nigerian mattress manufacturer, and plans to expand the business further into the West African market, the firm said on Tuesday.
The acquisition is through one of Abraaj’s funds, in partnership with Moukarim Family, the founding family of Mouka who will retain a minority stake in the company. No purchase price or a stake size was given.
Mouka has 500 distributors for its mattresses in Nigeria.
Mustafa Abdel-Wadood, Partner at The Abraaj Group, said: “Abraaj is one of the most active investors on the African continent, with a particularly strong track record in Nigeria. We continue to see significant upside potential across the country in tandem with the fast growth of its population and the expansion of its middle class. We’ve long been interested in the mattress-manufacturing space, and have carefully reviewed a number of opportunities in the past. The market opportunity for high quality sleeping products offers good potential for growth, and we believe Mouka is very well positioned to capitalize on this.”
Zahi El Khatib, Managing Director at The Abraaj Group, commented: “Mouka has long established itself as a household name in the Nigerian sleep products industry through its dedication to high quality manufacturing standards. Its products have come to represent quality, comfort and durability, and Abraaj together with the founding family intend to build on the strong legacy of the Mouka brand to consolidate its leadership position. We look forward to expanding the Company’s product line into adjacent categories within the bedding space, and growing the product offering to cater for different commercial and industrial applications of foam.”
Hasib Moukarim, non-executive Director of Mouka, added: “The Moukarim family recognized the Abraaj team’s deep local experience and the Group’s successful track record of developing businesses in growth markets globally. We are confident that Abraaj is the ideal investor to carry Mouka into its next phase of growth and look forward to our partnership.”
Earlier this year, Abraaj invested in Turkey’s leading mattress and sleep products manufacturer, exporter and retailer, BRN Sleep Products. In Sub-Saharan Africa, Abraaj has over a decade of investing experience, and its portfolio in Nigeria includes Fan Milk Nigeria, AOS Orwell, C&I Leasing, Custodian & Allied Insurance, Computer Warehouse Group, The Bridge Clinic & PathCare, and Lily Hospitals.
KPMG acted as financial and tax advisor, while Freshfields Bruckhaus Deringer LLP and Olaniwun Ajayi acted as legal advisors to The Abraaj Group on the transaction.
Source : BusinessDay