The Abraaj Group is to acquire in partnership with the European Bank for Reconstruction and Development (EBRD) and the Yörük family, a majority stake in Turkish dairy business Yörsan Group.
Yörsan has been manufacturing branded dairy products in Turkey for over 50 years.
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 TRY6.5bn in size and has grown even during economically challenging years such as 2009.
Working alongside a new leadership team, Abraaj will 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 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.
Selçuk Yorgancıoğlu, partner and regional head of Turkey and Central Asia at Abraaj, says: “The acquisition of Yörsan marks our eighth 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.”
Alain Pilloux, managing director at EBRD, says: “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.”
