Egyptian private equity firm Ezdehar Management acquires 80%+ stake in apparel company behind Dalydress and Premoda

Ezdehar acquires majority stake in local apparel player: Local private equity firmEzdehar Management has purchased above 80% stake in clothing company SETA Textiles — the company behind clothing brands Dalydress and Premoda — Ezdehar Private Equity Principal Farah El Agami told Enterprise. She refused to disclose the value of the transaction.

About the acquisition: The investment came through the Ezdehar Egypt Mid-Cap Fund II, which counts among its limited partners the European Bank for Reconstruction and Development, International Financing Corporation, European Investment Bank, and others, Ezdehar said in a press release (pdf). The acquisition includes a primary capital investment in SETA Textiles to aid the company’s plans to expand both in Egypt and overseas.

Expansion on the horizon: On the local front, the company aims to increase its branches,expand its online reach, and diversify its products in the apparel sector, El Agami said. SETA is also looking to expand overseas — either by opening branches abroad through partnerships and franchises and through online marketplaces. The company also wants to expand its existing presence in Saudi Arabia before expanding to other Gulf nations and potentially a number of African countries, she added.

The acquisition could open the door for more apparel investments: “The current macroeconomic challenges and growing demand for local brandshave made the local apparel market an attractive one for investment in general. Ezdehar could look to acquire more players in the market through SETA in the future,” El Agami told us.

Ezdehar is looking to invest some USD 70 mn this year across various sectors that include manufacturing, healthcare, retail, technology, and others, El Agami said. Ezdehar will unveil more investment news “very soon,” she added.