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Fri 7 Oct 2016 12:12 AM

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Dubai's Abraaj buys stake in Mexican footwear retailer

Investment firm announces acquisition of significant minority interest in Capa de Ozono

Dubai's Abraaj buys stake in Mexican footwear retailer

Dubai-based Abraaj Group has announced the acquisition of a significant minority stake in Capa de Ozono (CDO), a leading fashion footwear designer, distributor and retailer in Mexico.

Capa de Ozono was established in 1992 in the state of Guanajuato, the capital of the footwear industry in Mexico, and today has 207 stores in more than 50 cities.

The company, which is family owned, caters to teenagers and young adults in men's and women's footwear fashion.

Abraaj said the footwear sector in Mexico is projected to experience strong market growth of 8 percent over the next five years, driven by demographic factors and growth in disposable income.

Abraaj and CDO's management team will focus on capturing new revenue opportunities by expanding the number of stores and diversifying product categories and business lines. They will also seek to enhance operations.

Miguel Ángel Olea, partner and regional head of Latin America at Abraaj, said: "We believe this is an opportune time to enter the apparel and footwear retail market in Mexico, which is enjoying high levels of growth as a result of strong consumer demand from the growing middle class.

"Having successfully invested in the retail businesses across growth markets from Kenya to Peru, we have significant experience in the sector and plan to expand Capa de Ozono's footprint across new geographies, optimize the company's operations and current product mix to meet local demand and competition," added Olea.

Abraaj said it has invested in the Pacific Alliance countries of Colombia, Mexico and Peru since 2008 across a range of sectors including retail, tourism, technology, food and beverage and consumer goods.

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