Dealflow 2008: BC Partners Acquires Migros; Manara grabs 21% ACT Airlines; Abraaj Capital partners up with Acibadem Healthcare

A Turkish Private Equity Web Log

In an effort to cover the Turkish Private Equity Industry - for the promotion of Entrepreneurship, the private equity asset-investment model, and the communication thereof.

24 February 2008

Migros Turk Acquired by BC Partners, Ltd.
14 February 2008

BC Partners Ltd., a London-based buyout firm, has agreed to a 1.98 billion liras ($1.7 billion), or 21.85 liras a share leveraged buyout acquiring 51% of Migros Turk AS from Koc Holding AS. BC Partners will also offer to buy out minority stockholders at the same price. This places a value of about $3.2 billion for Turkey's largest supermarket chain.

Some interesting statistics concerning the deal and supermarket/retail in Turkey:

Migros Turk has 961 stores in Turkey, Azerbaijan, Kazakhstan, Kyrgyzstan and Macedonia.
The deal values Migros at about 21-times forecast 2008 earnings, according to the average of 18 estimates compiled by Bloomberg.
BC Partners beat off rival bidders including buyout firms Blackstone Group LP and Kohlberg Kravis Roberts & Co., and Russian billionaire Mikhail Fridman's Alfa Group, as well as Turkey's 2nd biggest retailer - Paris-based Carrefour SA.
Turkey has attracted about $40 billion of direct foreign investment in the past two years.
Turkey has 17 supermarkets per million people, compared with 150 in the European Union, according to accounting firm PricewaterhouseCoopers LLP.

Well, this one has long been anticipated, and it looks like even Turkven got a piece in the syndication deal. Well done - considering the recent closing of their TPEFund II. This also makes cash readily availible for Koc Holding who is expected to hit the energy sector hard with the privitaztion of Turkey's electricity producers and distributors.

This also marks the largest private equity deal to date in Turkey as well as BC Partners first entry into the Turkish market. This deal beats the KKR $1.28 billion buyout of UN RO-RO of last year..

To read more ----> Bloomberg: BC Partners to Buy Turkey's Migros for $3.2 Billion (Update4)
AltAssets: BC Partners to acquire Istanbul-listed supermarket chain Migros

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Manara Investments takes 21% stake in ACT Airlines
05 February 2008

A small cargo fleet of 7 Airbus A300's (2 Airbus A330-200s on order) and 250 employees based in Istanbul, ACT is looking to expand internationally into the MENA region, Eastern Europe, Central and South Asia. ACT was founded in 2004. Total value of the deal was not disclosed.

Manara is a newly established investment vehicle sponsored by four leading Saudi business groups. The four Saudi business groups, together with 3i Group plc, are the sponsors of the Manara Infrastructure Fund LP (MIF), a US$1 billion (target size) private equity fund for infrastructure investments in Islamic countries. It is intended that this investment in ACT will be transferred to MIF upon commencement of business.

To read more ----> Zawya: Manara Investments Acquires 21% Equity Stake in Turkey's ACT Airlines

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Acibadem Healthcare Services Signs 50/50 Joint Partnership with Abraaj Capital
28 January 2008

The basics of the deal:

Abraaj Capital, a premier investment firm specialising in private equity investment in the Middle East, North Africa and South Asia (MENASA) region, announced that it has partnered with Acibadem Healthcare Services, Turkey's leading healthcare provider, to support its ongoing expansion in Turkey and establish the company's presence in the Middle East.

Almond AS, a 50:50 joint holding company formed by Abraaj Capital and Mehmet Ali Aydinlar, one of the founders and the Chief Executive Officer of Acibadem, recently acquired a 69.6 per cent stake in the Turkish firm. Abraaj Capital also acquired a 50 per cent stake in leading Turkish health insurance company, Acibadem Sigorta, from Mr. Aydinlar. Abraaj Capital's investment was made through its US$2 billion Infrastructure and Growth Capital Fund (IGCF).

Some real interesting statisics about Healthcare in Turkey:

There are currently twice as many physicians per 1,000 people in the 30 countries within the OECD than there are in Turkey and in the GCC, and nearly three times the available hospital beds. In the GCC states alone, demand for treatment is expected to grow more than two-fold in the next 20 years, to approximately US$60 billion per annum by 2025.

Labels: Abraaj, acquisitions, BC Partners, Buyout, deal flow, Manara, Turkven