Capa de Ozono is the third largest fashion footwear company in Mexico

Abraaj will partner with Capa de Ozono to expand presence in Mexico, diversify product lines

Mexico City, Mexico, 26 September 2016

The Abraaj Group ('Abraaj' or the 'Group'), a leading investor operating in global growth markets, today announced the acquisition, through its Funds, of a significant minority stake in Capa de Ozono ('CDO' or the 'Company'), a leading fashion footwear designer, distributor and retailer in Mexico.

Capa de Ozono was established in 1992 in the state of Guanajuato, the capital of the footwear industry in Mexico, and today has 207 stores in more than 50 cities, including the six largest, as well as more than 300 wholesale clients and an online retail presence. The Company, which is family owned, caters to teenagers and young adults in men's and women's footwear fashion. It is positioned to benefit from rising consumption and consumer credit expansion as well as the unprecedented growth of second-and third-tier cities in Mexico. The footwear sector in Mexico is projected to experience strong market growth of 8% over the next five years, driven by demographic factors and growth in disposable income.

Abraaj and CDO's management team will focus on capturing new revenue opportunities by expanding the number of stores and diversifying product categories and business lines. They will also seek to enhance operations. Abraaj, which integrates environmental, social and governance (ESG) considerations into its investments, plans to further strengthen CDO's ESG record by improving energy efficiency throughout its distribution network, bolstering supply chain sustainability and enhancing corporate governance practices.

Commenting on the investment, Miguel Ángel Olea, Partner and Regional Head of Latin America at Abraaj, said, "We believe this is an opportune time to enter the apparel and footwear retail market in Mexico, which is enjoying high levels of growth as a result of strong consumer demand from the growing middle class. Capa de Ozono is a leading affordable fashion footwear brand targeted at young adults between the ages of 15 - 35. Through a multi-channel approach from offline to online, the Company has built a strong sustainable model and enjoys a loyal customer base."

"Having successfully invested in the retail businesses across growth markets from Kenya to Peru, we have significant experience in the sector and plan to expand Capa de Ozono's footprint across new geographies, optimize the company's operations and current product mix to meet local demand and competition. We are excited to work with Capa de Ozono's experienced management team to lead the next stage of the Company's growth story", added Mr. Olea.

Abraaj has a strong track record of investing in the retail sector globally, including in Iasacorp, a regional leader in the women's accessories sector in Latin America, D1, a Colombian hard discount retail store chain, and Hepsiburada, the market leader in the Turkish online retail sector. Abraaj has invested in the Pacific Alliance countries of Colombia, Mexico and Peru since 2008 across a range of sectors including retail, tourism, technology, food and beverage and consumer goods.

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For more information please contact:
Mitali Atal
Director - Communications
The Abraaj Group
E: mitali.atal@abraaj.com
Nyssa Kourakos
Finsbury
T: + 1.646-805-2032
E: nyssa.kourakos@finsbury.com

Aditi Mane
Finsbury
T: + 971 50 7384146
E: aditi.mane@finsbury.com

About THE ABRAAJ GROUP
The Abraaj Group ("Abraaj") is a leading investor, purpose-built for operating in the growth markets of Africa, Asia, Latin America, the Middle East, and Turkey.

Employing over 300 people, Abraaj has over 20 offices spread across five regions with hubs in Dubai, Istanbul, Mexico City, Nairobi and Singapore. The Group currently manages c. US$ 10 billion across targeted investment strategies.

Abraaj has realized US$ 6.3 billion from over 80 full exits, and Funds managed by the Group have made over 170 investments across a range of sectors including consumer, energy, financials, healthcare and utilities. The Group is committed to the highest environmental, stakeholder engagement and corporate governance standards and is a signatory to the United Nations-backed Principles for Responsible Investment and the United Nations Global Compact. Abraaj's founder, Arif Naqvi, was appointed to the United Nations Global Compact Board by UN Secretary-General Ban Ki-moon in 2012 and to the Interpol Foundation Board in 2014.

This publication is issued by Abraaj Capital Limited ("ACLD" or the "Firm"), a member of The Abraaj Group that is authorised and regulated by the Dubai Financial Services Authority ("DFSA"). Several Group members are regulated by a number of international regulatory authorities including the DFSA under whose rules ACLD has issued this publication.

© Press Release 2016