Abu Dhabi swoops on designer pushchairs beloved by middle class
Abu Dhabi’s sovereign wealth fund has swooped on designer pushchair brand Bugaboo, seizing control of the business from its private equity owner.
Mubadala Capital, a subsidiary of the Mubadala Investment Company chaired by Manchester City owner Sheikh Mansour, announced a majority stake in Bugaboo on Monday.
Famed for its popularity among Britain’s middle classes with pushchairs costing hundreds of pounds, Bugaboo has been owned by Bain Capital since 2018.
Under the terms of the deal, which is still subject to regulatory approval, Bain will retain a minority stake in the business.
Antoun Ghanem, head of Mubadala Capital’s European private equity team, said the fund had “been waiting for the right opportunity” to enter the lucrative children’s products market.
Founded in Amsterdam in 1999 by the entrepreneurs Max Barenbrug and Eduard Zanen, the business was launched to offer an alternative to “old-fashioned” strollers.
The brand has since expanded globally, selling pushchairs in over 50 countries and recently moving into car seats, travel cots and high chairs.
It has cultivated a staunch following among the British middle classes, with its products seen by many as a status symbol for aspirational new parents, who can spend more than £1,500 on new Bugaboo strollers.
The brand benefited from a surge in demand in America in the early 2000s after one of its pushchairs was featured in an episode of the TV show Sex and the City.
Celebrities including Gwyneth Paltrow, Victoria Beckham and Sir Elton John have all been pictured with Bugaboo pushchairs.
However the sale of the company to Bain Capital in 2018 was clouded by a row between its co-founders over the strategic direction of the company, reports at the time claimed.
Adriaan Thierry, the Bugaboo chief executive, said the company had almost doubled its revenues in the last five years, adding that the deal would help it grow into new markets.