DUBAI: Abu Dhabi-based Aliph Capital, the Middle East’s first female-led private equity firm, said on Thursday it had completed a 100 percent buyout of UAE business The Pet Shop from Kasamar Holdings.
The investment, the value of which was not disclosed, is the first under the firm’s Aliph Fund I, in which Abu Dhabi sovereign wealth fund ADQ invested $125 million, half its total.
“In addition to the buyout, Aliph Capital is injecting significant growth capital into TPS to expand its presence across the UAE and the region and consolidate its leading position in the pet space, with TPS expected to enter other fragmented GCC (Gulf Cooperation Council) markets including KSA and Qatar,” Aliph said in a statement.
Kasamar Holdings is a family office that invests in regional private equity, global real estate and public securities.
“We believe the industry has tremendous potential for continued growth and are delighted to pass the baton to Aliph to continue the expansion in the region,” Kasamar Director Mo Bissiso said in the Aliph statement.
Aliph, which targets medium-sized companies, said the pet care market in the UAE was worth $361 million in 2020 and was the largest in the Gulf, adding it is forecast to see a compounded annual growth rate of 9-11 percent.
Petsville founder Amr Hazem will become CEO of TPS to lead business development and expansion, Aliph said.
The Pet Shop, which owns the brands The Pet Shop, DubaiPetFood.com and Petsville, runs retail stores, the leading regional pet products e-commerce site and provides pet services from boarding to day care, training, relocation and grooming.
It has five stores, which include a 54,000 square foot Megastore in Dubai,
Aliph plans to deploy its first fund across around 10 to 12 companies, CEO Huda Al-Lawati told Reuters last month.
The smallest of Abu Dhabi's three main sovereign wealth funds, ADQ has emerged as one of the region's most active dealmakers. It began in 2018 as a holding company for government assets and has been consolidating its portfolio, privatizing some assets and making strategic acquisitions to build “national champions”.
It has investments in energy, utilities, healthcare, food, and tourism sectors, among others.