Abraaj acquires majority stake in Turkish dairy
Istanbul, January 21, 2014
The Abraaj Group, a leading investor, has acquired through its fund a majority stake in Yörsan Group, a leading Turkish manufacturer and distributor of high quality dairy products.
The acquisition was made in partnership with the European Bank for Reconstruction and Development (EBRD) and the Yörük family.
Yörsan has a strong portfolio of products covering all the main dairy categories of yoghurt, cheese, milk and the traditional Turkish drink - ayran.
The dairy sector in Turkey is estimated to be currently TL6.5 billion ($2.9 billion) in size, said a statement.
Its growth is driven by a number of characteristics including the continued conversion from open to packaged products due to rising urbanisation and an increasing share of organised retail which currently stands at 50 per cent of the market in terms of volume.
Abraaj will use its significant investment expertise and track record in the dairy industry as well as its strong networks across growth markets to transition Yörsan onto its next phase of growth both inside and outside of Turkey.
Selçuk Yorgancioglu, partner and regional head of Turkey and Central Asia at Abraaj, said: “The acquisition of Yörsan marks our eighth investment in Turkey since 2007. Our investment pipeline in Turkey remains robust, with the long-term prospects for the Turkish economy continuing to look extremely good.”
Alain Pilloux, managing director at EBRD, said: “The EBRD is pleased to partner with Abraaj in this opportunity in the Turkish dairy sector. This marks the EBRD’s first co-investment with the group, and we look forward to working together in the future, both in Turkey and in other regions.”
Türkiye Garanti Bankasi and Yapi Kredi provided acquisition financing and acted as joint mandated lead arranger for this transaction, while Esin Attorney Partnership, Baker & McKenzie and Freshfields Bruckhaus Deringer have acted as legal counsel and 3 Seas Capital Partners provided buy side advisory services. - TradeArabia News Service