29 Sep 2010
Investcorp, the asset management firm specializing in alternative investments, and Tiryaki Agro, the leading trader and supply chain manager of agro commodities in Turkey, announced today that Investcorp’s Gulf Opportunity Fund I will make a $50 million investment in Tiryaki Agro, becoming a significant minority shareholder.
Tiryaki Agro was founded in Gaziantep, Turkey, in 1965 by the Tiryakioglu family. It has expanded over two generations to become one of the most successful family businesses in Turkey with sales operations across the globe.
The capital will be mostly used to invest in new assets to strengthen Tiryaki Agro’s growth and support its expansion into different markets in the region.
Tiryaki Agro’s business is in the sourcing, processing, storage and trading of conventional and organic grains (wheat, corn and barley), pulses (lentils, chickpeas, peas, beans, rice and bulgur), oil seeds (sunflower, sesame, kanola and soybean), feed stuff and nuts (pistachios, almonds, walnuts and peanuts) across Europe, Africa, the Middle East, the CIS, America and Asia. It has successfully expanded over nearly 50 years to become the leading trader and supply chain manager of agro products in Turkey, sourcing products from 20 countries and exporting to 60 countries. The company has a team of 450 professionals, has processing and storage facilities in Turkey and serves a broad customer base including food processors, retailers, governmental agencies and other agro wholesalers.
The agro industry is an extremely resilient industry with growth driven by population and income growth as well as by changes in dietary preferences. The fragmented structure of the trading and supply chain management sector creates strong opportunities for integrated companies such as Tiryaki Agro that have distinct competitive advantages in sourcing, logistics and processing.
Mohammed Al Shroogi, Investcorp’s President, Gulf Business, said: “We are pleased to have formed this partnership with Tiryaki Agro. This is further testament to Investcorp’s ability to find high quality investment opportunities across different regions. By demonstrating our clear alignment of interest we are able to develop strong partnerships with the leading family business names. This perfectly showcases how the Gulf Opportunity Fund I can support the growth and reinforce the competitiveness of such companies. This is our first investment in Turkey, a country in which we see many future opportunities for growth for Investcorp.”
Mr. Ahmet Tiryakioglu, Tiryaki Agro’s Chairman said: “For generations, my family has focused on developing Tiryaki Agro to become a leading company in its sector. Our position today is a result of our sustained investment in developing our asset base, our sourcing and the quality of our service. We had different alternatives to consider for the next phase of our growth. We chose to work with Investcorp as we believe it brings unique understanding and strong capabilities that will help accelerate Tiryaki Agro’s growth. We look forward to working together in close partnership.”
This transaction is the fourth investment by Investcorp’s Gulf Opportunity Fund I, the $1 billion private equity fund of Investcorp for the MENA region and Turkey.