Target Information

Mohd, a Sicilian company founded in the 1960s in Messina, has evolved from a local showroom to a global digital platform specializing in premium furnishings. The company serves over 100 countries, showcasing a selection of 700 high-end brands. Since joining the Made in Italy Fund portfolio in 2019, Mohd has significantly expanded its operations, increasing its revenue from 28 million euros to 70 million euros, and achieving an EBITDA of 7 million euros. The number of showrooms has also doubled from three to six, with a current workforce of 115 employees.

The growth trajectory of Mohd has been propelled by strategic investments in e-commerce and logistics, including a multilingual website and an omnichannel strategy. The establishment of a logistics center in Torregrotta, Messina, has further enhanced its operational capabilities. Additionally, the company has successfully positioned itself in the contract segment, supporting customized projects for private clients and industry professionals.

Industry Overview in Italy

The Italian furniture and design industry is renowned globally for its craftsmanship, aesthetic innovation, and quality. Italy's rich history in design and manufacturing places it at the forefront of the industry, with numerous brands recognized as leaders in high-end furnishings and decor. The market has shown resilience, continuing to attract consumers despite economic fluctuations, thanks to its strong reputation and the increasing demand for luxury products.

In recent years, the industry has experienced a significant shift towards digitalization, with e-commerce gaining prominence as a sales channel. The COVID-19 pandemic accelerated this trend, leading many traditional retailers to adopt online sales platforms. Italian companies, such as Mohd, have adeptly navigated these changes by investing in their digital infrastructure and developing comprehensive omnichannel strategies that engage customers across multiple touchpoints.

Furthermore, sustainability has become a focal point within the industry, with consumer preferences shifting towards eco-friendly products and practices. This change has prompted companies to innovate and adapt their offerings, integrating sustainable materials and production processes. Italy's furniture sector is increasingly leveraging this trend, presenting a lucrative opportunity for brands that prioritize environmental responsibility.

According to industry reports, the Italian furniture market is expected to continue its growth, supported by rising disposable incomes and an increasing willingness to invest in premium home furnishings. Innovations in product design and technology will further enhance competitive advantages for companies that embrace these advancements.

The Rationale Behind the Deal

The investment by Dexelance in Mohd reflects a strategic move to strengthen its portfolio within the high-end furniture and design sectors. The acquisition of a majority stake in Mohd aligns with Dexelance's vision of expanding its market presence and enhancing its product offerings. Mohd's established brand and impressive growth trajectory present a compelling opportunity for Dexelance to leverage synergies and drive further growth.

The continued involvement of the Mollura family, who founded Mohd, ensures that the company's core values and vision remain intact. Their reinvestment signifies confidence in the company's future and the strategic direction set by the new ownership.

Information About the Investor

Dexelance is an industrial group publicly traded on the Italian Stock Exchange, with a strong focus on the furniture, lighting, and design sectors. The company has a history of successful acquisitions and a commitment to fostering innovation and growth within the industries it operates. Dexelance aims to enhance its offerings by diversifying its portfolio and investing in high-quality brands that resonate with consumers' evolving preferences.

By acquiring Mohd, Dexelance not only gains access to a well-established brand but also taps into the growing demand for luxury home furnishings. The investment positions Dexelance to capitalize on new market opportunities and further solidify its status as a leader in the Italian design landscape.

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Considering the successful track record of Mohd under the Made in Italy Fund, this acquisition by Dexelance appears to be a sound investment decision. Mohd's robust growth in revenue and EBITDA is indicative of a strong business model that has adapted well to market dynamics. Additionally, the company's focus on e-commerce and logistics bodes well for future scalability and profitability.

The continued involvement of the Mollura family provides continuity and expertise, ensuring that the company retains its identity while pursuing new growth avenues alongside Dexelance. The strategic positioning of Mohd in the premium segment also suggests that it will attract a discerning customer base, further enhancing its market position.

However, the challenge for Dexelance will be to maintain and expand Mohd's brand equity while integrating the firm into its existing operations. If managed effectively, this acquisition has the potential to yield significant returns for Dexelance, reinforcing its growth strategy within the competitive landscape of high-end furniture and design.

In conclusion, the deal between Dexelance and Mohd represents a promising venture that not only aligns with market trends but also enhances the broader objectives of both entities in the upscale furnishings industry.

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