Abraaj Capital acquires stake in Turkish luxury yacht maker

Abraaj, the largest private equity firm in the Middle East and North Africa, will partner Numarine Chief Executive Officer Omer Malaz, who founded the company in 2002.

The investment is Abraaj's second in Turkey and third in the marine business. Last year, it bought part of Acibadem, the only healthcare provider listed on the Istanbul exchange. Abraaj also owns stakes in Dubai-based luxury-yacht distributor ART Marine, and Gulf Marine Maintenance & Offshore Company, which primarily serves the Oil and Gas industry.

"We are delighted to partner with Omer and Numarine, and believe that the company is extremely well positioned to benefit from the growing demand for high quality, excellent value motor yachts," said Abraaj Managing Director Mustafa Abdel-Wadood.

Global demand for recreational boats, which grew 11.4% per year between 2000 and 2006, is expected to rise further, with Turkey's market share expanding as it matches or exceeds comparable international makers in technology and style at more competitive prices.

Last year, Turkey became the world's seventh-largest producer of luxury yachts.

Numarine

The Gebze-based company produces three sizes of yachts; 55 feet (16.8 metres), 78 ft and 102 ft, and plans to introduce further sizes to its range. Numarine yachts are produced with vacuum-assisted infusion technology and state-of-the-art materials, resulting in light, strong, fast and luxurious vessels with high price-quality ratios.

Using the latest production techniques and in-house facilities for furniture, upholstery and steel parts, Numarine ensures consistent quality and timely delivery. In 2004 and 2005, Numarine was a yacht-trophy finalist at the Cannes Boat Show.

"The opportunities for Numarine are significant, both in our core Turkish market and internationally," said Omer Malaz. "Numarine's combination of advanced technology and personal service makes us a compelling option for many yacht buyers."

Before joining Numarine, General Manager Rob Billington was head of production at Princess Yachts International Plc, one of the world's best known yacht brands.

The company is looking to tap growing markets in the Middle East, Asia and Eastern Europe.

"The leisure and luxury marine market has demonstrated positive, long-term growth through economic cycles," Mustafa Abdel-Wadood said. "We expect Numarine to establish itself quickly as a brand of choice."

Yachting in the Middle East

Demand for yachts in the Middle East, for instance, has soared in the last few years, with the region now accounting for 8% of global owners, compared with almost zero a decade ago, according to the Global Order Book 2008 survey.

Numarine will use the capital injection to expand its production facilities, as well as boost research and development, and product design.