The Abraaj Group said July 27 that it has acquired a minority stake in Netlog Lojistik Hizmetleri AS. Financial terms weren’t announced. Netlog, of Istanbul, is an integrated logistics company.
Istanbul, Turkey, 27 July 2017: The Abraaj Group (“Abraaj” or the “Group”), a leading investor operating in growth markets, announced today that it has acquired, through its Funds, a significant minority stake in Netlog Lojistik Hizmetleri AS (“Netlog” or the “Company”), Turkey’s largest integrated logistics company with a strong presence in Europe and Asia.
Netlog was founded in 2003 by Sahap and Gokalp Cak (together the “Founders”), who have extensive domestic and international supply chain management experience. As part of the transaction, the Founders will maintain a majority stake and continue to manage the Company.
Since inception, the Company has scaled its platform both organically and via acquisitions to become the market leader in Turkey, providing integrated supply chain solutions in its domestic and international markets. Netlog offers a full suite of supply chain solutions including warehousing, domestic and international trucking alongside air and sea freight forwarding through its extensive network of over 65 warehouses, with a combined area of more than 1.1 million square meters. Netlog also operates one of the largest owned fleet in Turkey with over 3,200 transport vehicles. Netlog’s value added logistics offering covers a diversified set of sectors including fast moving consumer goods (FMCG), food and beverage, retail and fashion.
The Company’s customer proposition is strengthened by specialized value-added services. Netlog, through its subsidiary PolarXP, is the largest player and the pioneer in temperature-controlled logistics in Turkey with an extensive warehouse and distribution network. Furthermore, Netlog’s subsidiary Bleckmann offers e-commerce logistics services for the fashion industry in its home markets of Belgium and Netherlands as well as the United Kingdom and the United States.
Abraaj has a strong global investment track record in the logistics sector across growth markets. Since inception, the Group has made a number of key investments including Aramex, the Middle East’s leading logistics provider, Ninja Van, a technology enabled last-mile logistics operator in South East Asia, and Urbano, a leading courier and light logistics company in Latin America.
Logistics in Turkey is a compelling sector in which to invest, given its strategic location, favorable consumer and regulatory trends, coupled with rising global trade. The logistics sector will continue to play a key role in the long-term strategic development of Turkey, bolstered by the government’s plans to further upgrade its logistics infrastructure by 2023, with a focus on high speed rail, motorways and container port facilities. As the most diversified logistics company in Turkey, Netlog is competitively placed to benefit from these growth drivers.
Leveraging Abraaj’s and the Founders’ experience in the sector, Netlog will accelerate its growth by investing in infrastructure and expanding its footprint across MENA and Europe through organic and inorganic opportunities. The Group will continue to institutionalize the business through implementation of best in class corporate governance, environmental and social standards.
Commenting on the transaction, Şahap Çak, Chairman, Netlog, said: “Having grown Netlog to become one of Turkey’s top 100 companies, we are excited to embark on this new journey with Abraaj. They recognize the value the Netlog leadership and senior management team have brought to the business and are fully aligned with our growth plans. We look forward to utilizing Abraaj’s expertise as we seek to achieve our vision of becoming the pre-eminent logistics player in our target markets.”
Selçuk Yorgancıoğlu, Partner and Regional Head of Turkey and Central Asia, The Abraaj Group, added: “Our partnership with Netlog marks Abraaj’s 10thinvestment in Turkey. This is testament to our conviction about the attractive long-term fundamentals of the Turkish economy. The transaction also corresponds with our strategy of partnering with businesses operating in structurally sound sectors that have demonstrated robust growth and are primed to achieve further success. Turkey’s geostrategic location creates a huge number of opportunities for the country’s most dynamic businesses to grow beyond their borders.”
Gökalp Çak, Vice Chairman, Netlog, added: “Since 2003, Netlog has not only grown to become Turkey’s leading logistics company but also the most diversified through our niche offerings. With Abraaj, we have found a partner that shares our commitment to accelerate Netlog’s growth and widen our value-added services, such as temperature-controlled logistics and e-commerce logistics, across Europe and the Asia region. Our partnership with Abraaj will also enable us to transition from a family-business to an institutionalized corporate with a sustainable and long-term future”
Omar Syed, Partner, The Abraaj Group, concluded: “At Abraaj, we partner with businesses operating in consumer-driven sectors that have demonstrated robust growth. Netlog is not only the largest but also the most diversified logistics company in Turkey, has a proven business model and an exceptional management team. We are confident the Company is well placed to expand its market position to be a leading global player.”
Abraaj has been present in Turkey since 2007. The Group’s most recent investments in Turkey include Hepsiburada in 2015 and Fibabanka in 2016.