![Furniture Palace has 9 stores in Nairobi, Mombasa and Eldoret. [Photo/ Furniture Palace]](https://businesstoday.co.ke/wp-content/uploads/2022/03/images-14.jpeg "images (14)")
Moroccan furniture retailer Kitea Group, backed by Private Equity (PE) firm Tana Africa Capital, has acquired a majority stake in Furniture Palace.
Furniture Palace is one of Kenya’s leading furniture retailers. It has 9 stores spread across Nairobi, Mombasa and Eldoret.
Kitea Group operates 30 stores in 17 cities across Morocco. The firm announced the deal on Thursday, March 3 although specifics including the size of the stake remain undisclosed.
However, an August 2021 regulatory filing before the Comesa Competition Commission (CCC) indicates that Kitea was looking to acquire a 55.9% stake in Furniture Palace.
“The proposed acquisition relates to Tana Furniture directly acquiring a 27.95 percent shareholding in Furniture Palace International Limited and a 27.95 percent shareholding through Furniture For Africa (a wholly-owned subsidiary of Kitea S.A which is in turn jointly controlled by Tana Furniture).”
“The shareholding acquired by Tana Furniture and FFA represents 55.9 percent of the share capital and voting rights of FPL,” the CCC noted.
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The deal remains subject to regulatory approvals.
Commenting on the acquisition, Kitea founder and chief executive Amine Benkirane stated: “Kitea’s investment in Furniture Palace is in line with our vision to build the most diversified furniture distribution group in all of Africa.”
“Our mission in Morocco has always been to democratise furniture while providing the best offer and customer experience to Moroccan consumers and we hope to extend this vision beyond the borders of Morocco.”
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