The Abraaj Group has acquired a majority stake in Mouka, a mattress manufacturer in Nigeria, from previous shareholders, Actis and the founding family, with the latter retaining a minority stake in the company.

Financial details of the transaction were not disclosed.

Zahi El Khatib, Managing Director at The Abraaj Group, said: “Mouka has long established itself as a household name in the Nigerian sleep products industry through its dedication to high quality manufacturing standards. Its products have come to represent quality, comfort and durability, and Abraaj together with the founding family intend to build on the strong legacy of the Mouka brand to consolidate its leadership position.”

Established in 1959, Mouka is one of Nigeria’s largest mattress manufacturers, producing a wide range of mattresses and bedding products.

The company has an extensive distribution network across the country, partnering with over 500 distributors who operate through more than 1,000 outlets.

Speaking on the exit, John Opubor, Director in Actis’s Nigerian office, said: “Favourable 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 urbanisation levels, and an expanding middle class. We saw an opportunity to help Mouka capitalise on this trend and have been pleased with the growth we’ve been able to help the company achieve.”

Abraaj, in partnership with the Moukarim family, will draw on its significant regional investment expertise to consolidate Mouka’s leadership position in Nigeria, and will look to expand the business further into the West African market.

Abraaj and the Moukarim family 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 said it plans to further strengthen the corporate governance structures already in place within the Company, and optimize the health and safety standards at Mouka’s production facilities, including key areas pertaining to fire safety and chemical storage, amongst others.

“We look forward to expanding the Company’s product line into adjacent categories within the bedding space, and growing the product offering to cater for different commercial and industrial applications of foam,” El Khatib said.

Hasib Moukarim, non-executive Director of Mouka, added: “The Moukarim family recognized the Abraaj team’s deep local experience and the Group’s successful track record of developing businesses in growth markets globally. We are confident that Abraaj is the ideal investor to carry Mouka into its next phase of growth and look forward to our partnership.”

“We would like to thank the Actis team for its contribution to our company’s development. Actis has been a great partner and they have helped us to fulfill our promise to offer durable and quality products for consumers in Nigeria and the wider West African market,” he added.

Abraaj is one of the most active investors on the African continent, with a particularly strong track record in Nigeria.

Its portfolio in Nigeria includes Fan Milk Nigeria, AOS Orwell, C&I Leasing, Custodian & Allied Insurance, Computer Warehouse Group, TheBridge Clinic & PathCare, and Lily Hospitals.

Mustafa Abdel-Wadood, Partner at The Abraaj Group, said: “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.”