Defacto Perakende Ticaret sells minority stake to Templeton-led group


Templeton Asset Management Ltd. has led a consortium to buy a minority stake in Defacto Perakende Ticaret A.S. Financial terms weren’t announced. Defactor is an apparel retailer based in Istanbul. Franklin Resources Inc. is the ultimate parent of Templeton Asset Management.

PRESS RELEASE

Istanbul, London, New York, Singapore; 8 April, 2015 – A consortium led by Templeton Strategic Emerging Markets Fund IV LDC (“TSEMF IV”) has announced that it has acquired a minority stake in Defacto Perakende Ticaret A.S. (“Defacto”, the “Company”), a leading apparel retailer in Turkey and its neighbouring countries.

TSEMF IV, which invests in unlisted as well as listed companies in emerging markets, is the fourth strategic private equity fund managed by Templeton Emerging Markets Group of Templeton Asset Management Ltd., an investment management company incorporated in Singapore.

Dr. Mark Mobius, executive chairman of the Templeton Emerging Markets Group said, “We are pleased to become a minority shareholder in Defacto. We are very impressed with the management and growth potential of the company. In our view, Defacto serves a huge market in casual apparel retailing in emerging markets by providing a good value to its customers, and we hope that our support will enable the company to reach its expansion goals in the region and in overseas markets.”

Erman Kalkandelen, senior executive director of the Templeton Emerging Markets Group said, “Defacto has managed to become a leading brand in Turkey, a big consumer market. As one of the oldest emerging market investors in the world, Templeton Emerging Markets Group likes consumer businesses with a strong brand equity and value proposition. Furthermore, we believe Defacto has a replicable business model and presence in the mid-market apparel segment that is growing fast, particularly in emerging markets. Ultimately, we are very excited to invest in Defacto and hope that we will meaningfully contribute to their growth.”

Ihsan Ates, retail group president and vice chairman of Defacto said, “we are very excited to welcome Templeton as our new partner, and we hope that their experience and expertise in international markets will be very valuable to DeFacto. I believe that this partnership with Templeton should positively contribute to our broader strategy of regional and global expansion in the coming years. We have a bold expansion plan in Turkey and want to expand our international operations significantly, including entering several new countries.”

-END-

 

About Defacto

Established in 2003, Defacto is one of the leading apparel retailers in Turkey and has a strong brand name. The Company’s value proposition is a basic product offering under DeFacto brand across a broad range of categories including comfort and casual wearing apparel, accessories and shoes both for men and women at affordable price levels. Defacto opened its first store in Istanbul in September 2005 and first international store in Kazakhstan in 2012. Defacto has currently stores in Turkey, Kazakhstan, Iraq, Egypt, and Belarus. It is headquartered in Istanbul and has a design office Barcelona.

 

Defacto has been one of the fastest growing apparel companies in Turkey since its establishment. The company reached close to 1.18bn Turkish Lira (around USD $460m) sales in 2014. During the year, it opened 57 new stores and reached 259 stores with 172.765 sales/per square meter Turkey and abroad.

 

Defacto has ambitious targets for 2015 and onwards. The company wants to grow its  sales by opening additionalstores in, and outside of Turkey. The initial focus in expansion will be on Eastern Europe, Central Asia, and Middle East.

 

About Templeton Strategic Emerging Markets Fund IV LDC (“TSEMF IV”) and Templeton Emerging Markets Group

 

TSEMF IV, a company incorporated in the Cayman Islands and available only to qualified investors, makes strategic investments throughout emerging markets.

 

TSEMF IV is a private equity fund managed by Templeton Asset Management Ltd. (“TAML”), the investment advisor for the Templeton Emerging Markets Group led by Dr. Mark Mobius, a pioneer in emerging markets investing who has over 40 years of emerging markets investment experience.

 

As of December 31, 2014, Templeton Emerging Markets Group manages a variety of emerging market strategies and has more than 50 investment professionals based in 18 offices located throughout the world, including emerging market countries such as Singapore and Hong Kong.  The Templeton Emerging Markets Group is headed by Dr. Mark Mobius and managed over US$40 billion as of December 31, 2014, across its various strategies.

 

Franklin Resources, Inc. (“FRI”) (NYSE: BEN), the ultimate parent company of TAML, is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management to retail, institutional and sovereign wealth clients in over 150 countries, as of December 31, 2014. Through specialized teams, the Company has expertise across all major asset classes—including equity, fixed income, alternative and custom solutions. The Company’s more than 600 investment professionals as of December 31, 2014, are supported by its integrated, worldwide team of risk management professionals and global trading desk network. With offices in 35 countries, the California–based company has more than 65 years of investment experience and around $894 billion in assets under management as of February 28, 2015. For more information, please visit www.franklintempleton.com.

 

 

Do you want exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more? Get your FREE trial to Buyouts! Or subscribe now!