Mediterra Capital to put Soke Un on the block, mandates Raiffeisen - sources
10 DEC 2020
Mediterra Capital*is exploring a sale option for its portfolio company, Turkish flour producer*Soke Un, and has mandated*Raiffeisen International Bank*as financial advisor, sources familiar with the process told*Mergermarket.
Some potential bidders are already circling, two of the sources said. One suggested that Turkey-based*Eksim Holding, which operates the Sinangil, Eksun and Altinapa brands, could be interested, and a further source said that other large flour companies like*Ulusoy Un*[IST:ULUUN] could look at bidding.
Multiple bidders are expected to participate in the process, including local competitors and food producers, and international strategic players, one of the sources said. Another of the sources said that it is likely to draw interest particularly from local peers, and from international investors in Asia, including Japan,*and the GCC region.
Besler Makarna,*Ova Un,*Kozlu Gida,*Ulusoy Un,*Eksun Gida*(Eksim Holding) and*Ulas Gida*are the leading players in the Turkish market, according to Istanbul Chamber of Industry's (ISO) Top 500 Industrial Enterprises list.
A spokesperson for Eksim Holding confirmed the company's interest in Soke Un, but said it is still evaluating options.*
Mediterra Capital, Soke Un, Raiffeisen International Bank and Ulusoy Un did not return requests for comment.
Mediterra has seen Soke Un grow unexpectedly during the COVID-19 pandemic as there has been a shift towards home baking, one of the sources said, which is why it is exploring a sale option earlier than had originally been anticipated. The company has grown by some 50% more this year than last year, he said.
The vendor acquired Soke Un in 2015 for an undisclosed amount. It is the leading player in Turkey's branded packaged flour market with an around 30% market share, has a solid presence in the B3C packaged flour market as well as in B2B sales, generating more than TRY 600m (USD 80m) revenue, two of the sources said.
Soke Un has been diversifying its product offering to position itself as a food producer on the back of its "Soke" brand, and recently launched new value-added product categories in the bakery segment, one of these sources added.
Established in 1963, Soke Un is a wheat flour producer in Turkey. It operates two production facilities, located in Aydin province and the capital, Ankara, and has capacity to process around 1,200 tons of wheat a day.
Globally, Turkey ranks number one in flour consumption per capita, and the Turkish flour market has a total volume of around 11 million tons with the packaged flour market accounting for around 500,00 tons, one source said.
Turkish flour manufacturers exported a total of 3.4 million tons of flour and 1.2 million tons of pasta in 2019, industry association data*shows.
