After acquiring a majority stake in Kitea Group, the…
Kitea Group plans to expand into sub-Saharan Africa after purchasing a majority stake in Kenya‘s Furniture Palace, a deal involving Tana Africa Capital and a number of professional services firms.
Moroccan furniture company kitea group has acquired a majority stake in a Kenyan retailer furniture palace with the support of the Johannesburg-based private equity firm, Tana Africa capital.
Through the transaction, Kitea aims to strengthen its position in Morocco and develop a broader, Africa-wide business.
Established in 2002, Furniture Palace has nine locations in Nairobi, Mombasa and Eldoret, while Kitea was established in 1993 and has 30 stores in 17 Moroccan cities and franchised stores in Central Africa.
Amine Benkirane, Founder and Managing Director of Kitea, said in a statement: “We hope to continue to build on the strong foundation and brand built by Furniture Palace’s founding shareholders and management, and our offering and accumulated Expand know-how for all Kenyan and East African consumers in the years to come.”
Tana is owned by the South African Oppenheimer family, whose fortune comes from the The beers Diamond Company and a Singapore State Investment Company Temasek stocks. The investment company operates across Africa in the consumer goods, retail, agribusiness, healthcare and education sectors.
The investment company’s managing director, Robert Leke, said: “Tana is delighted to support KITEA’s investment in Furniture Palace and to provide consumers in Kenya and East Africa with a premium furniture retail experience and offering.”
Tana and Kitea were advised on the transaction by lawyers from Moroccan, Kenyan and South African offices Asafo & Cowith advice on finances from Grant Thorntonadvertising off Dalbergreal estate off Knight Frank and PR of Africa matters.
Furniture Palace was advised by a law firm ENSafrica.
Partners in Casablanca Patrick Larrive and Benoit de Monval led the Asafo & Co team with employees Martin Van Box Som and Louis Raymond GomesNairobi Partners Ricardo Bernhardassociated Yvette Akoth and Maxwell Mafuboand Antitrust Director of Johannesburg Nkonzo Hlatshwayo from Asafo & Lawtonsthe South African legal company founded by Asafo & Co and Lawton’s.
Larrivé previously led a team that acted in an advisory capacity AfricaInvest in buying a stake in a Moroccan IT company in December and a West African solar business in October, while the company also acted on a January 2022 drilling deal in Senegal.
In a joint statement, Furniture Palace founder Noorali Manji and CEO Rahul Haria said: “We believe there are many synergies and insights to be shared between your company and Kitea. “Both companies […] have a shared vision to build a pan-African leader in furniture retail across Africa,” they continued.
Asafo & Co entered the United States in May 2021 and hired a securitization attorney in Paris last month.