Friday 22 January 2021

Abraaj Group acquires stake in Mexican fashion footwear firm

MEXICO CITY, September 26, 2016

The Abraaj Group, a leading investor operating in global growth markets, today announced the acquisition, through its Funds, of a significant minority stake in Capa de Ozono (CDO), a leading fashion footwear designer, distributor and retailer in Mexico.

Capa de Ozono was established in 1992 in the state of Guanajuato, the capital of the footwear industry in Mexico, and today has 207 stores in more than 50 cities, including the six largest, as well as more than 300 wholesale clients and an online retail presence.

The company, which is family owned, caters to teenagers and young adults in men’s and women’s footwear fashion. It is positioned to benefit from rising consumption and consumer credit expansion as well as the unprecedented growth of second-and third-tier cities in Mexico. The footwear sector in Mexico is projected to experience strong market growth of 8 per cent over the next five years, driven by demographic factors and growth in disposable income.

Abraaj and CDO’s management team will focus on capturing new revenue opportunities by expanding the number of stores and diversifying product categories and business lines. They will also seek to enhance operations. Abraaj, which integrates environmental, social and governance (ESG) considerations into its investments, plans to further strengthen CDO’s ESG record by improving energy efficiency throughout its distribution network, bolstering supply chain sustainability and enhancing corporate governance practices.

Commenting on the investment, Miguel Ángel Olea, Partner and Regional Head of Latin America at Abraaj, said: “We believe this is an opportune time to enter the apparel and footwear retail market in Mexico, which is enjoying high levels of growth as a result of strong consumer demand from the growing middle class. Capa de Ozono is a leading affordable fashion footwear brand targeted at young adults between the ages of 15 – 35.  Through a multi-channel approach from offline to online, the company has built a strong sustainable model and enjoys a loyal customer base.”

“Having successfully invested in the retail businesses across growth markets from Kenya to Peru, we have significant experience in the sector and plan to expand Capa de Ozono’s footprint across new geographies, optimize the company’s operations and current product mix to meet local demand and competition. We are excited to work with Capa de Ozono’s experienced management team to lead the next stage of the Company’s growth story”, added Olea.

Abraaj has a strong track record of investing in the retail sector globally, including in Iasacorp, a regional leader in the women’s accessories sector in Latin America, D1, a Colombian hard discount retail store chain, and Hepsiburada, the market leader in the Turkish online retail sector. Abraaj has invested in the Pacific Alliance countries of Colombia, Mexico and Peru since 2008 across a range of sectors including retail, tourism, technology, food and beverage and consumer goods. - TradeArabia News Service

Tags: Mexico | Abraaj | footwear |

More Retail & Wholesale Stories

calendarCalendar of Events