Abraaj buys majority stake in Turkish dairy firm Yörsan

Dubai-based private equity firm Abraaj, in partnership with the European Bank for Reconstruction and Development (EBRD) and the Yörük family, has bought a majority stake in Yörsan, a Turkish manufacturer and distributor of dairy products.

Yörsan has a portfolio of products covering all the main dairy categories of yoghurt, cheese, milk and the traditional Turkish drink – ayran.

According to Abraaj, the partnership with EBRD will give the company access and insight into the Balkans and CIS region.

The investment marks the company’s eighth in Turkey since 2007 and comes after the recent purchase of a majority stake in Fan Milk, West Africa’s leading manufacturer and distributor of frozen dairy products and juices.

Besides this, Abraaj also owns an interest in Brookside Dairy, which is the largest dairy in East Africa.

Abraaj managing director Omar Syed said that Yörsan is a 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,” Syed added.

“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 realise our ambition of transforming Yörsan from a highly successful family-run Turkish dairy business into a world-class FMCG player.”

Türkiye Garanti Bankasi and Yapi Kredi provided funds for the acquisition and acted as joint mandated lead arranger, while Esin Attorney Partnership, Baker & McKenzie and Freshfields Bruckhaus Deringer acted as legal counsel, and 3 Seas Capital Partners provided buy side advisory services for the transaction.

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Image: Yörsan has been manufacturing branded dairy products in Turkey for over 50 years. Photo courtesy of Somchai Som at FreeDigitalPhotos.net.