Dubai: When it comes to acquisitions, Marka’s got a strategy cast in stone.
“We have largely been funding acquisitions with 30 per cent of our own cash and 70 per cent bank funding and, usually different banks on each acquisition,” said CEO Nick Peel. “Because each acquisition requires a very distinct approach.
“We have never — and never will — overpay for an acquisition. By the time we have completed our first six acquisitions, we will still have about half of our capital left in the bank to fund ongoing capital injection in other projects and growing the footprint of some of our acquisitions.”
Last year Marka had a float on the Dubai bourse, offering 275 million shares (representing 55 per cent of capital), which was oversubscribed 36 times.
Plans are afoot for “two or three key core acquisitions certainly in the sport vertical and in F&B vertical”, according to Peel. “We have made four acquisitions so far ... F&B is a high-margin business and it can fund future capital investment.
“But we are not just collecting F & B brands for the sake of it — we are very targeted in the brands we bring aboard. It’s the easiest thing if you are a retail company to sit here and attract lots of Western brands. But that’s never what Marka has been about.
“We are not silent partners in any of our acquisitions. Most occasions, we would prefer to own outright but still keep the management team at the table. But we are pragmatic and every deal is measured on its own.
“The expansion plan and growth plan are all looked at in detail and if we decide majority stakes best suit the development of that brand, then that is what we do.
“It has been an incredibly busy seven to eight months (for) Marka. This is the year where we are going to establish the platform from where Marka is going to move on. We are in a position for take-off.”
