Moroccan mattress maker Dolidol, backed by African private equity firm, Development Partners International (DPI), has signed a deal to acquire Mouka, a Nigerian manufacturer of mattresses and pillows for $60 million.
This was revealed in a statement released by DPI where it stated that this acquisition by Dolidol is for it to establish its presence in Africa’s largest economy and expand its base in the region.
“Combining Dolidol’s track record in new product development with Mouka’s route to market, the deal creates the leading player in mattress and bedding space, well-positioned to deliver long-term sustainable growth across Africa,” it stated.
The statement added that the transaction brings together two businesses with highly complementary capabilities, with an addressable Nigerian market of approximately 200 million people providing an opportunity for significant growth.
Sofiane Lahmar, the partner at DPI, said Dolidol’s acquisition of Mouka presents an exciting opportunity for growth as it creates a large and potential-filled market.
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“As the most populous country in Africa, Nigeria shares many of the same trends as the continent, including positive demographics, a fast-growing middle class, and rising consumer spending,” Lahmar said.
A source close to Mouka, who confirmed the development, described it as a ‘deal between two international companies with positive effect.’
“There is nothing negative about the development. But we need to wait for Mouka to release the full details of the deal and this will happen soon,” the source told BusinessDay.
“Today’s announcement represents an important milestone for our company and creates a regional champion in North and West Africa well placed to serve the fast-growing African market. We are looking forward to partnering with Ray Murphy and his management team as we focus on achieving our expansion strategy across the continent,” Saad Berrada, chairman, Dolidol said.
Founded in 1959, Mouka makes polyurethane foam products and mattresses in Nigeria, with three factories in the country and has a distribution network of 350 third-party distributors. Its products are distributed through over 1,000 outlets.
Mouka had, in 2015, attracted the now-defunct investment house Abraaj Capital with the purchase of a controlling stake. It had bought the stake from emerging markets PE firm Actis. In 2019, Actis once again gained control of the fund that housed Mouka as part of the asset sale of Abraaj.
Dolidol, which makes polyurethane foam and bedding products, was established in Morocco in 1972. It expanded its geographical footprint to Ivory Coast in 2014. As of December 31, 2020, it employed 1,000 people with a logistics platform covering 17,000 sqm and 150 trucks.
The company sells its products through a network of 1,100 distributors, 50 owned stores, and 10 distribution facilities.
Dolidol is also a leading operator in the technical foam segment catering to the automotive industry, supplying the largest European automotive manufacturers from its base in Morocco.
The company recently launched the construction and operation of a recycling plant to transform used PET plastic bottles into polyester fibers, enhancing its environmental footprint and improving the vertical integration of its foam activity.
