Private equity firm Abraaj Group has announced the acquisition of a majority stake in the family-run Turkish dairy business Yörsan Group.
The investment was confirmed in partnership with the European Bank for Reconstruction (EBRD) and the Yörük family, according to a statement.
Yörsan Group has been manufacturing dairy products in Turkey for the last 50 years and its portfolio of products includes yoghurt, cheese, milk and the traditional Turkish drink, Ayran.
Turkey’s dairy sector has an estimated value of around $2.8 billion.
The industry’s growth has been driven by rising urbanisation, continued conversion from open to packaged products and an increased share of organised retail, which currently constitutes 50 per cent of the market share.
Experts say Turkey’s dairy sector has ample potential for growth since dairy consumption volumes per capita are still low when compared to developed markets.
Abraaj’s investment will help the Yörsan Group to grow both domestically and internationally, said the statement.
“We believe the company has great potential to quickly become the market leader in the higher value dairy segment,” said Omar Syed, managing director at Abraaj.
He said that the investment will help turn the family run Turkish dairy business into a global FMCG player.
Abraaj Capital is one among many private equity investors looking to cash in on the Turkey’s economic growth, which exceeded five per cent a year on average.
The UAE-based private equity firm is also ramping up dairy investments – it recently acquired a minority stake in Fan Milk, a distributor of frozen dairy products and juices in West Africa and also invested in East Africa’s largest dairy firm, Brookside Dairy.