The Abraaj Group acquires majority stake in
leading Turkish dairy business Yörsan Group
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Yörsan has a leading market position and consumer heritage spanning
over 50 years
Abraaj acquisition made in partnership with the European Bank for
Reconstruction and Development and Turkey’s Yörük family
Highly attractive Turkish dairy sector provides ample room for further
organic growth
Istanbul, Turkey, 21 January 2014: The Abraaj Group („Abraaj‟ or „The Group‟), a leading
investor operating in global growth markets, today announced an agreement to acquire
through its Fund a majority stake in Yörsan Group („Yörsan‟), a market leading Turkish
manufacturer and distributor of high quality, dairy products, in partnership with the European
Bank for Reconstruction and Development (‘EBRD‟) and the Yörük family.
Yörsan has been manufacturing branded dairy products in Turkey for over 50 years, during
which time it has built high brand recognition and loyalty and has a market leading position in
the higher value dairy segments. Yörsan has a strong portfolio of products covering all the
main dairy categories of yoghurt, cheese, milk and the traditional Turkish drink - ayran.
Yörsan‟s dedication to high quality products, its modern production facility in Susurluk and its
pan-national distribution network makes it one of the best positioned dairy manufacturers in
the fast growing Turkish dairy industry.
The dairy sector in Turkey is estimated to be currently TL6.5 billion1 in size and has grown
even during economically challenging years such as 2009 which highlights the industry‟s
defensiveness. Growth in the Turkish dairy industry is driven by a number of attractive
characteristics. These include the continued conversion from open to packaged products
due to rising urbanization and an increasing share of organized retail which currently stands
at 50% of the market in terms of volume. Also, Turkish income per capita levels, which have
1
Euromonitor and proprietary market research.
doubled over the last decade, are expected to do so again in the next 10 years. Turkey‟s
dairy sector demonstrates ample room for growth considering dairy consumption volumes
per capita are still low at approximately 1/3 the levels of more developed markets.
Working alongside a new and seasoned leadership team, 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.
In what was the largest private equity FMCG transaction in Sub Saharan Africa, outside of
South Africa, Abraaj recently acquired a majority stake in Fan Milk, a leading manufacturer
and distributor of frozen dairy products and juices in West Africa. Abraaj also has ownership
in Brookside Dairy, which is the largest dairy in East Africa. These previous investments,
coupled with EBRD‟s experience and portfolio in Eastern Europe and CIS countries, will
provide Yörsan‟s management with access to a global network and deep sector knowledge.
Selçuk Yorgancıoğlu, Partner and Regional Head of Turkey and Central Asia at Abraaj,
said: “The acquisition of Yörsan marks our 8th investment in Turkey since 2007. We feel
privileged to be partnering with EBRD and the Yörük family on the acquisition of this much
loved and iconic Turkish brand. Abraaj has a highly successful track record in Turkey
underpinned by proven investment partnerships, landmark exits and a strong commitment to
this vibrant country. Our investment pipeline in Turkey remains robust, with the long-term
prospects for the Turkish economy continuing to look extremely good.”
Omar Syed, Managing Director at Abraaj, said: “Yörsan is a long established and
respected brand in the Turkish dairy sector. We believe the company has great potential to
quickly become the market leader in the higher value dairy segment. The combination of
Abraaj‟s unique value creation focus, our global experience in the dairy industry and the
strength of the company‟s management team will realize our ambition of transforming
Yörsan from a highly successful family run Turkish dairy business into a world class FMCG
player. To this end, partnering with EBRD is a strong value added aspect which provides us
access and insight to the Balkans and CIS region."
Alain Pilloux, Managing Director at EBRD said: “The EBRD is pleased to partner with The
Abraaj Group in this exciting opportunity in the dynamic Turkish dairy sector. This marks the
EBRD‟s first co-investment with The Abraaj Group, and we look forward to working together
in the future, both in Turkey and in other regions.”
On this transaction, Türkiye Garanti Bankasi A.Ş. and Yapı Kredi have provided acquisition
financing and acted as joint Mandated Lead Arranger; Esin Attorney Partnership (a member
firm of Baker & McKenzie International), Baker & McKenzie and Freshfields Bruckhaus
Deringer LLP have acted as legal counsel, 3 Seas Capital Partners has provided buy side
advisory services.
ENDS
For more information please contact:
Emily Hargreaves
RLM Finsbury
emily.hargreaves@rlmfinsbury.com
+971 (0)56 286 4290
About THE ABRAAJ GROUP
The Abraaj Group (“Abraaj” or “the Group”) is a leading private equity investor, purpose-built for
operating in the growth markets of Africa, Latin America, the Middle East, South Asia, South East
Asia, Turkey and Central Asia.
Employing over 300 people, Abraaj has over 25 offices spread across six regions with hubs in
Istanbul, Mexico City, Dubai, Mumbai, Nairobi and Singapore. The Group currently manages US$ 7.5
billion across more than 20 sector and country-specific Funds, encompassing private equity and real
estate investments.
Abraaj has returned c. US$ 4.2 billion to investors from over 70 full and partial exits, and Funds
managed by the Group currently have holdings in over 140 partner companies across 10 sectors
including consumer, energy, financials, healthcare and utilities.
The Group is committed to the highest environmental, stakeholder engagement and corporate
governance standards and is a signatory to the United Nations-backed Principles for Responsible
Investment and the United Nations Global Compact. Abraaj‟s founder, Arif Naqvi, was appointed to
the United Nations Global Compact Board by UN Secretary-General Ban Ki-moon in 2012.
This publication is issued by Abraaj Capital Limited (“ACLD” or the “Firm”), a member of The Abraaj
Group that is authorised and regulated by the Dubai Financial Services Authority (“DFSA”). Several
Group members are regulated by a number of international regulatory authorities including the DFSA
under whose rules ACLD has issued this publication.
About EBRD
The EBRD, owned by 64 countries and two intergovernmental institutions, is supporting the
development of market economies and democracies. In Turkey, the EBRD has invested over €3
billion in about 100 different projects in various sectors since 2009. Follow us on the web,
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