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Mubadala buys into Bugaboo: Sovereign wealth fund Mubadala’s investment arm Mubadala Capital acquired a majority stake in Amsterdam-based stroller manufacturer Bugaboo Group from US private investment firm Bain Capital, according to a press release. The exact size and value of the majority stake was not disclosed, though sources told the Financial Times it values Bugaboo at “several hundred mn” GBP. Bain Capital said that it will retain a minority stake in the Dutch firm, which it fully acquired in 2018.
Mubadala will steer Bugaboo towards expansion: Mubadala plans to extend Bugaboo’s reach into growth markets and position the child products manufacturer as a “consolidator in the fragmented industry, with the objective of creating the global leader in the juvenile products space,” the release reads.
Which growth markets? Mubadala is looking to grow the firm in geographies with “a lot of organic growth but…there are a lot of opportunities,” such as the US and Asia, Antoun Ghanem, executive director and head of Mubadala Capital’s private equity team in Europe, told the FT. Ghanem noted that the transaction could pave the way for further transactions, which can be small scale bolt-on acquisitions or larger “transformative” mergers and acquisitions.
ADVISORS- Mubadala secured the acquisition through debt financing provided by First Abu Dhabi Bank, Citi, and Natixis Corporate & Investment Banking, acting as arrangers and underwriters. Citigroup served as financial advisor to Mubadala Capital, while Barclays and Baird advised Bugaboo.
OTHER M&A NEWS-
GFH Financial Group now holds a 76.63% majority stake in its subsidiary GFH Equities, after raising its stake by 12.5%, according to an ADX disclosure (pdf). The move is expected to reflect positively on the firm’s financials.
