Posted on 14 February 2011
Big Deal – London Company buys 51% of Migro in Turkey
BC Partners’ takeover is the biggest by any buyout firm in the country – 961 stores
BC Partners Ltd. has agreed to buy Migros Türk, Turkey‘s largest supermarket chain, for about $3.2 billion in the country’s biggest-ever leveraged buyout. The London-based buyout firm will acquire 51 percent of Migros Türk for YTL 1.98 billion ($1.7 billion), or YTL 21.85 a share, from Koç Holding, according to a filing with the Istanbul Stock Exchange yesterday. The firm said it will offer to buy out minority stockholders at the same price, which is 11 percent more than Wednesday’s close. BC Partners will gain 961 stores in Turkey and nearby countries through the takeover, and plans to profit by boosting the supermarket’s share of grocery sales at the expense of street vendors, who control about 60 percent of the market, according to a national industry group. Turkey has 17 supermarkets per million people, compared with 150 in the European Union, according to accounting firm PricewaterhouseCoopers LLP. “Penetration of organized retail is very low in Turkey and companies like Migros Türk have high growth potential and will increase their market share,” said Murat Ignebekçili, an analyst at EFG Istanbul Securities.
February 15, 2008 Turkish Daily News – (Abridged)