Yildiz to sell yeast-making unit to French firm Lesaffre

Turkey-headquartered food company Yildiz Holding has struck a deal with Lesaffre, a France-based yeast extracts and bakery yeast manufacturer, to sell its yeast-making unit Dosu Maya for $220m.

The move comes after the company’s recent acquisition of DeMet’s Candy from US private investor Brynwood Partners for $221m.

Yildiz chairman Murat Ulker was quoted by Bloomberg as saying that the company has at least $500m to fund acquisitions this year.

Ulker said, "We always have a billion liras or more in our pocket and use it in portfolio investments all around the world.

"We are constantly monitoring regions for acquisition opportunities."

In 2010, the company along with a partner bought Dosu Maya from the country’s banking fund in a $106m deal.

Yildiz Holding is primarily engaged in the production and distribution of biscuits, candies and chocolates.

In 2013, the group reported an 18% rise in revenues, compared with TRY12.4bn ($5.48bn) a year ago.

Yildiz stated that it will revise its sales targets for fiscal 2014 as the lira declined 12% due to political turmoil.

In addition to a presence in the food segment, the company also operates in the finance, packaging, real estate, retail, information technology and personal care sectors.

Gozde Girisim Sermayesi Yatirim Ortakligi, the private equity arm of Yildiz, is in negotiations with a foreign fund to sell a 11.6% stake in Islamic lender Turkiye Finans Katilim Bankasi.