DIC acquires stake in Rivoli Group

DUBAI - Dubai International Capital LLC (DIC), the international investment arm of Dubai Holding, yesterday said it had acquired a significant stake for an undisclosed amount in the Rivoli Group, a leading Dubai-based luxury lifestyle retailer.

By Issac John (Deputy Business Editor)

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Published: Tue 25 Sep 2007, 8:52 AM

Last updated: Mon 6 Feb 2023, 10:42 AM

DIC, which manages an international portfolio of diverse assets worth $7 billion, described the investment as a milestone in regional private equity transactions, and said the move was in line with its policy of supporting established family-owned businesses with good growth potential. "DIC's investment philosophy is based on selecting market leaders with experienced and committed management teams with strong growth prospects."

According to Rivoli, a leading family-owned business which owns and operates more than 215 stores throughout the GCC, the tie-up and investment would support the retail group's regional expansion drive.

A Rivoli spokesperson declined to disclose the size and value of the stake sold to DIC. "At this point we will not be able to disclose the exact details of the transaction," she told Khaleej Times.

Sameer Al Ansari, Executive Chairman and Chief Executive Officer of DIC, said DIC's regional strategy is focussed on supporting established family-owned businesses that have an excellent track record of successful expansion and attractive growth potential. DIC is keen to tap into additional opportunities in family-owned businesses in order to support their future growth plans."

"Over the years, Rivoli has built a strong brand name as a leading luxury retailer and the group's operating and financial performance have been outstanding. The regional luxury goods market is vibrant and continues to demonstrate favourable growth prospects, particularly for luxury watches, in which Rivoli commands a strong market share."

Ansari noted that Rivoli's reputation as a well-run enterprise with an experienced management team is of fundamental importance. "This investment is in line with DIC's strategy of supporting the growth strategies of successful management teams."

With a diverse portfolio of international luxury brands, Rivoli imports, distributes and retails a wide range of luxury products including high-end watches, writing instruments, menswear, accessories, eyewear and gifts.

He said Rivoli's management team will continue to be led by Managing Partners Adel Al Zarouni and Ramesh Prabhakar. DIC's investment will support Rivoli's aggressive growth strategy and bring to fruition a series of value-creating initiatives including expansion into new retail markets, the development of innovative retail concepts and the addition of new luxury brands to the group's portfolio.

Prabhakar said partnering with DIC would enable Rivoli to build on its successful track record and take the retail chain to a new level of leadership in the luxury retail sector. "DIC's investment in Rivoli will enable further growth of the group's operations throughout the region. We are excited to implement the key elements of our growth strategy and take advantage of growth opportunities that include the expansion of our retail network throughout the region and the broadening of our luxury brand portfolio with additional world-class brands."

Zarouni said he hoped with DIC's support, Rivoli will reach its goals and will ensure that it continues to be well-positioned to attain even greater success.

Set up in 2004, DIC's global investments include £800 million acquisition of The Tussauds Group, £675 million acquisition of Travelodge, $ 1 billion stake in DaimlerChrysler, £700 million acquisition of Doncasters Group, and €850 million acquisition of Mauser AG. It also invests in publicly listed equities through its $2 billion Global Strategic Equities Fund.

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