London, 31 December 2014 – Funds advised by BC Partners (“BC Partners”), a leading private equity firm, have reached an agreement to sell half of their remaining 80.5% shareholding in Turkey’s largest supermarket chain, Migros Ticaret A.Ş., (“Migros” or the “Company”), to Anadolu Endustri Holding AS, (“Anadolu”), a major Turkish conglomerate, for TL26 per share.
The price values the Company at c. TL6.4 billion (c. €2.3 billion) and represents a 36% premium to the share price on 2 October 2014 when the discussions were first announced. Once the transaction has completed, BC Partners and Anadolu will effectively have entered into a partnership to jointly control and operate Migros. Completion is subject to regulatory approvals.
Nikos Stathopoulos, Managing Partner of BC Partners, said: "During the last 6 years of our ownership of Migros we have worked closely with management to grow the business, strengthening its market position and more than doubling the number of stores and the company's sales. We are delighted to be entering a partnership with Anadolu, given their reputation and extensive experience in the Turkish consumer market, and look forward to continuing to support Migros’ next phase of growth."
Tuncay Özilhan, Chairman and CEO of Anadolu, commented: "We are delighted to be investing in a well-managed successful company with great leadership and partnering with BC Partners. We see enormous potential to further develop the business, utilising more than 60 years of proven experience in the Turkish consumer market."
BC Partners was advised by Bank of America Merrill Lynch and JP Morgan on this transaction.
Headquartered in Istanbul, Migros is the leading Turkish food retailer with a circa 15.5% share of the organised food retail market. The group operates more than 1,190 stores, and is present in 70 cities throughout all seven Turkish regions, making it the only truly national food retailer in Turkey. It is by far the largest supermarket group, operating under the 'Migros', 'Tansas' and 'Macrocenter' banners.
In the first nine months of 2014, Migros generated sales of approximately TL6,032 million. Listed on the Istanbul Stock Exchange, the company is among the 30 largest public companies in the country.
BC Partners is a leading private equity firm with advised funds of €12.6 billion. Established in 1986, BC Partners has played an active role in developing the European buy-out market for 28 years. BC Partners executives operate as an integrated team through the firm’s offices in Europe and North America, acquiring and developing businesses to create value in partnership with management. Since inception, BC Partners has completed 87 investments in companies with a total enterprise value of €88 billion and is currently investing its ninth fund, which was raised in 2011 with total commitments of €6.7 billion.