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Mediterrania and Capital Trust take minority stakes in retail group

In its second transaction in as many weeks, Mediterrania Capital Partners announced the acquisition of a minority stake in three North African retail clothing businesses owned by the Ben Salem Group; Tunisia’s BS Invest, Morocco’s CAP Retail and Algeria’s Investex Algérie. The investment, which is being done in concert with Capital Trust-managed Euromena III, a $150 million vehicle, is being transacted through Mediterrania’s €120 million second fund, which invested in Cieptal Cars a couple of weeks ago.

As part of the deal, Daniel Viñas, the Partner who led the deal on behalf of Mediterrania Capital, and Albert Alsina, the private equity firm’s CEO and Managing Partner will take seats on the Ben Salem Group’s board. Currently, the Group, which retails leading international apparel brands, operates 76 sales outlets in key cities in Tunisia, Morocco and Algeria and has plans to open more than 100 additional stores in the countries’ shopping malls and downtown areas. The two private equity investment firms plan to actively support the expansion strategy of the group.

Commenting on the deal, Alsina said “We are convinced about the strong potential of the consumer market in the North Africa region and are confident that the Group is ideally positioned to reap its benefits.”

Mediterrania Capital II, which closed in August 2015, sources opportunities in the Maghreb region—Morocco, Tunisia and Algeria— and Sub-Saharan Africa, targeting minority stakes in small and medium-sized businesses with equity values ranging between €25 million and €400 million in the Healthcare, Consumer Goods, Business Services, Financial Services, General Industry and Transport and Logistics sectors.

Dentons and EY provided legal advisory services and financial advisory services respectively to Mediterrania Capital for this transaction.

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