(Ecofin Agency) - Moroccan furniture and bedding company Dolidol has bought out Mouka, a Nigerian company which manufactures polyurethane foam products and mattresses. Dolidol spent $60 million for this transaction. The deal, reported December 1 by Moroccan media, marks Dolidol’s second African expansion.
"The acquisition of Mouka presents a real opportunity to evolve in a structured market, with a growth potential of about 10% annually," said Mohamed Lazaar, MD of Dolidol. Last May, the company, which is 77% owned by the Berrada Sounni family, was already planning to expand into Africa's largest economy. This move strengthens its presence on the continent, following its 2016 entry into the Ivorian market.
In 2018, the bedding operator had partnered with British Development Partners International, which not only had an existing presence in Nigeria through its investment in the successful restaurant chain, Chicken Republic, but was also expected to provide the capital to support the Moroccan company's SSA expansion. “The announcement represents an important step for our company and creates an indisputable Pan-African champion of the North, West and East of the continent, strategically placed to serve the better an African market in strong growth,” said Saad Berrada Sounni (pictured), president of Palmeraie Holding, one of the companies owned by the Berrada Sounni family and which holds 14% of Dolidol. According to several local media, the company is also preparing expansion plans in Ethiopia, East Africa and Uganda.