02/05/2003

Advent International and Turkven Private Equity have partnered with Doruk to buy the leading Turkish bakery Unmas from Dogus Holding.

Turkey has the world’s highest per capita bread consumption at 146 kg p.a. per person but packaged bread currently represents less than one percent of bakery sales and is reported to be growing faster than the overall market. Unmas is the main producer of packaged bread in Turkey under the brand name UNO.

With a turnover of USD17 million in 2002, the company sells its products throughout Turkey and has 40% market share of the fast growing packaged bread segment. Since its inception, UNO has built a reputation for quality products, supplying most of Turkey’s retail outlets and fast food chains, including Carrefour, Migros, Tansas, and Burger King, as well as food service clients. The company’s standards of safety and hygiene lead the industry in Turkey.

Hasip Gencer, Unmas’ Founder & CEO, rejoins the company as CEO. Mr Gencer says: ”Thirteen years ago at UNO, we started the second generation of the bakery industry emphasising high quality, branded and packaged value added bakery products. We now are in an even stronger position to build on this success and grow rapidly, thanks to our cooperation with Advent and Turkven.”

The return of Mr Gencer and his team after 3 years, combined with the drive and presence of Advent International and Turkven, will set the company on an accelerated growth trajectory. Commenting on the investment, Turkven’s Evren Unver says: “UNO will continue to grow from a strong position both in terms of market share and brand recognition. The company is well positioned to take advantage of the trends affecting the Turkish food market, including opportunities for consolidation in its sector.”

Gelu Tudose, a Principal with Advent International’s Central European team said: “We believe that the current staff of UNO together with new management will build on the strengths of the brand to increase coverage, penetration and profitability”.

Doruk is the leading exporter and producer of wheat flour in Turkey with an annual turnover of USD65 million in 2002. The company, which dates back to 1980, is also one of the major players in the Turkish grain market. In 2002 the company formed a joint venture together with Zeelandia of the Netherlands for the local production of bakery and patisserie ingredients.

Advent International has made a number of investments in the food sector in Europe, including BCS, a French bakery group, Elior, a pan-European contract and concession catering group, and Star Foods, one of Poland’s leading snack food producers. Advent prides itself in the breadth of its geographic coverage with offices and affiliates in 25 countries.

Turkven Private Equity is an affiliate of Advent International and in December 2002 closed its first fund at USD44 million. Investors in the fund included the IFC, NBG, FMO, EIB, DEG and TTGV. Turkven is led by Evren Unver and Seymur Tari, both previously with McKinsey & Company, and Eren Nil, previously with JP Morgan Chase.