Dubai-based Abraaj Group on Tuesday announced the acquisition of a majority stake in Mouka Limited, a leading mattress manufacturer in Nigeria.
In partnership with the Moukarim family, Abraaj acquired its stake from previous shareholders, Actis and the founding family, with the latter retaining a minority stake in the company. No value was given for the deal.
Moukarim Metalwood Factory Limited, the precursor of Mouka Limited, was established in Kano, Nigeria in 1959, producing furniture and allied metal products for the bedding industry.
Today, Mouka is a household brand name in Nigeria and a leading manufacturer in the Nigerian foam and bedding space.
The company has an extensive distribution network across the country, partnering with over 500 distributors who operate through more than 1,000 outlets.
Abraaj and the Moukarim family said they will focus on enhancing Mouka’s product offering, customer service, as well as its sales and distribution strategy by increasing its market penetration across the region.
Abraaj plans to further strengthen the corporate governance structures already in place within the company, and optimise the health and safety standards at Mouka’s production facilities, including key areas pertaining to fire safety and chemical storage, a statement said.
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 capitalise on this.”
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.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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