Dubai-based private equity firm Abraaj Capital has acquired a 50 per cent stake in Turkish luxury-yacht manufacturer Numarine as global demand grows in the $25 billion market for recreational boats.
Abraaj, the largest private equity firm in the Middle East and North Africa, will partner Numarine CEO Omer Malaz, who founded the company in 2002.
The investment is Abraaj’s second in Turkey and third in the marine business. Last year, it bought part of Acibadem, the only healthcare provider listed on the Istanbul exchange. Abraaj also owns stakes in Dubai-based luxury-yacht distributor ART Marine, and Gulf Marine Maintenance & Offshore Company, which primarily serves the oil and gas industry.
Abraaj managing director Mustafa Abdel-Wadood said his company was well positioned to benefit from the growing demand for high-quality, excellent-value motor yachts.
Global demand for recreational boats is said to have grown 11.4 per cent per year between 2000 and 2006 and is expected to rise further with Turkey’s market share expanding as it matches or exceeds comparable international makers in technology and style at more competitive prices.
Last year, Turkey became the world’s seventh-largest producer of luxury yachts.
Headquartered in Gebze, 30 miles east of Istanbul, Numarine produces three sizes of yachts: 55 feet (16.8 m), 78 ft and 102 ft, and plans to introduce further sizes to its range.
“Numarine yachts are produced with vacuum-assisted infusion technology and state-of-the-art materials, resulting in light, strong, fast and luxurious vessels with high price-quality ratios,” an Abraaj statement said.
“Using the latest production techniques and in-house facilities for furniture, upholstery and steel parts, Numarine ensures consistent quality and timely delivery.”
Basic prices for Numarine vessels range from 645,000 euros ($954,500) to 5.8 million euros, depending on size. In 2004 and 2005, Numarine was a yacht-trophy finalist at the Cannes Boat Show.
“The opportunities for Numarine are significant, both in our core Turkish market and internationally,” said Malaz. “Numarine’s combination of advanced technology and personal service makes us a compelling option for many yacht buyers.”
Numarine’s general manager is Rob Billington, who, before joining the company, was head of production at Princess Yachts International Plc, one of the world’s best known yacht brands.
The company is looking to tap growing markets in the Middle East, Asia and Eastern Europe.
“The leisure and luxury marine market has demonstrated positive, long-term growth through economic cycles,” Abdel-Wadood said. “We expect Numarine to establish itself quickly as a brand of choice.”
Demand for yachts in the Middle East, for instance, has soared in the last few years, with the region now accounting for 8 per cent of global owners, compared with almost zero a decade ago, according to the Global Order Book 2008 survey.
Numarine will use the capital injection to expand its production facilities, as well as boost research and development, and product design.
Abraaj Capital specialises in private equity investment in the Middle East, North Africa and South Asia (Menasa) region. “The management team has brought together some of the most compelling and successful transactions in the history of leveraged acquisitions across the region,” Abraaj said.
“With $5 billion of assets currently under management, Abraaj has pioneered institutionalising private equity practice in the region and is setting trends and benchmarks for others to follow.”
The company has won several industry awards including ‘Middle Eastern Private Equity Firm of the Year’ from Private Equity International (2005, 2006 and 2007); the Banker Middle East Award for ‘Best Private Equity House’ in 2006 and for ‘Outstanding Contribution to Financial Services’ in 2007, and ‘Best Private Equity House’ at the World Private Equity Awards, Mena, in 2007.
Abraaj is also the first pure private equity firm to be registered by the Dubai Financial Services Authority to operate out of the Dubai International Financial Centre.