The Abraaj Group has acquired a majority stake in Nigerian mattress manufacturer, Mouka Ltd, from emerging markets private equity firm Actis and the firm’s founding Moukarim family. While Actis is fully exiting its majority investment, the Moukarim family will still retain a minority interest. The financial terms of the deal were not disclosed.
Actis first invested in the manufacturer of foam spring mattresses, polyurethane blocks, pillows and furniture in 2007, since when the firm has expanded it operations cross Nigeria, built new production facilities and institutionalized the organization , creating a sustainable, successful corporation.
Speaking on the exit, John Opubor, Director in Actis’s Nigerian office, said: “Favorable demographics are driving growth and a positive consumer environment in Nigeria — the country boasts a large and fast-growing population, high GDP per capita growth, rising urbanization levels, and an expanding middle class. We saw an opportunity to help Mouka capitalize on this trend and have been pleased with the growth we’ve been able to help the company achieve.”
Earlier this year, Abraaj invested in BRN Sleep Products, a Turkish mattress and sleep products manufacturer, exporter and retailer. The deal adds a new holding to Abraaj’s portfolio of Nigerian companies which The National reports includes Fan Milk Nigeria, AOS Orwell, C&I Leasing, Custodian & Allied Insurance, Computer Warehouse Group, The Bridge Clinic & PathCare and Lily Hospitals.
Mustafa Abdel-Wadood, a Partner at Abraaj is quoted in the press release announcing the deal as saying; “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.”
KPMG acted as financial and tax adviser for The Abraaj Group in the deal, with legal advice being provided by Freshfields Bruckhaus Deringer and Olaniwun Ajayi.