Dubai-based private equity firm Abraaj Capital said it has acquired a 50 per cent stake in Turkish luxury-yacht manufacturer Numarine.
The acquisition is Abraaj's third in the $25 billion marine industry, which has seen global demand grow in the market for recreational boats.
The largest private equity firm in the Mena, Abraaj will partner with Numarine CEO Omer Malaz, who founded the company in 2002.
The investment is also Abraaj’s second in Turkey. 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.
"We are delighted to partner with Omer and Numarine, and believe that the company is extremely well positioned to benefit from the growing demand for high quality, excellent value motor yachts," said Abraaj managing director Mustafa Abdel-Wadood.
Global demand for recreational boats, which grew 11.4 per cent per year between 2000 and 2006, 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. The Gebze-based company produces three sizes of yachts; 55 feet, 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.
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."
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,” Wadood said. “We expect Numarine to establish itself quickly as a brand of choice,” he added.
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 plans to use the capital injection to expand its production facilities, as well as boost research and development, and product design. - TradeArabia News Service