Dolidol

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Founded in 1972, Uni Confort Maroc – Dolidol SA (“UCM”, “Dolidol” or the “company”, www.dolidol.ma), is one of the oldest mattress manufacturers in Morocco. UCM is part of the B Group, a family office active in industry, tourism and real estate sectors. UCM is a subsidiary of Palmeraie Industries, which houses B group’s industry, mining, education and agriculture businesses. ADP II, a fund managed by DPI (Development Partners International), in which IFC is an LP also owns a minority stake in Dolidol. The company has a manufacturing facility in an industrial zone of Dar Bouazza, near Casablanca in Morocco, which was established in 2009. The facility is spread over an area of 25 ha (250,000 m2) and has following divisions: (a)   Polyurethane Foam Division: Produces foam for living room and furnishings as well as foam products for automotive sectors. (b)   Mattress Division: Produces spring/foam mattresses and lounges under its private labels as well as Therapedic and Sealy mattresses (United States brands) under license. (c)   Non-woven textile Division: Manufactures rigid sheets and rolls of felt for furnishings and bedding, Doina for duvets, polyester in bags for filling in pillows and cushions, pillows and cushions, polyester balls, acoustic felt and apron for automobile. (d)   Logistics Platform: Storage of finished products and operation of a fleet of 150 trucks.  The company also has 10 logistics depots/warehouses and 50 owned mattress stores in various locations across Morocco. Additionally, the company also has following subsidiaries:  (a)   Uni Comfort Cote d’Ivoire (UCCI) in Abidjan, Cote d’Ivoire which produces locally polyurethane foam and mattress since 2016. (b)   Lematelas.com (LMC) in Morocco, an online retail shop for major bedding brands, launched in 2014 that owns 6 showrooms. The key operations in manufacturing of mattresses are foam making (by using chemicals like Polyol and Toluene Di-isocyanate), foam block formation, block cutting, foam stabilization, foam wrapping in textile covers, packing, storage and dispatch.   The proposed investment is a senior secured loan of up to €35 million (equivalent to $39 million) to support Dolidol’s (the “Project”): (i)     Expansion in Sub-Saharan Africa through acquisition of a mattress manufacturing company in Nigeria. (referred as the “target facilities or Nigeria facilities”)(ii)  Establishment of a greenfield plastic recycling business in Morocco (Dolicen) to manufacture recycled polyethylene (PET), polyethylene flakes, polyester staple fibers and non-woven geotextiles through the recycling of PET bottles. The division will be located within the Morocco facility, which has been constructed and installation of machines is pending (referred as “Dolicen facility”); and(iii)    Installation of solar panels (1.3kVA) on the rooftop of the Morocco facilities.