The Abraaj Group said Monday that it has acquired Yü-Ce Tıbbi Gereçler İthalat İhracat Mümessillik Sanayi ve Ticaret A.Ş. (Yu-Ce Medical). Financial terms weren’t announced. Istanbul, Turkey-based Yu-Ce Medical is a disposable medical supplies manufacturer.
Istanbul, Turkey, 10 August 2015: The Abraaj Group (‘Abraaj’ or the ‘Group’), a leading investor operating in global growth markets, today announced the acquisition, through one of its Funds, of a stake in Yü-Ce Tıbbi Gereçler İthalat İhracat Mümessillik Sanayi ve Ticaret A.Ş. (‘Yu-Ce Medical’ or the ‘Company’), a leading disposable medical supplies manufacturer in Turkey. Yu-Ce Medical marks Abraaj’s second investment from its Anatolia Growth Capital Fund and the first ever private equity investment completed in Şanlıurfa.
Established by Mr. Cengiz Balçık and Mr. Yümnü Balçık in 1995, Yu-Ce Medical began its operations as a medical supplies importer. In 2007, the Company started producing medical gauze and medical sponges in Şanlıurfa, and started manufacturing absorbable and non-absorbable surgical sutures in 2013.
Today, Yu-Ce Medical is a leading medical gauze and medical sponge producer, and among the few domestic surgical suture producers in Turkey. The Company carries out its manufacturing operations in two company-owned factories and has an established sales platform across Turkey, including a diversified customer base of more than 230 state, university and private hospitals and over 190 medical distributors.
The Turkish disposable medical supplies market has experienced an 11% annual growth rate in US$ terms over the last five years, and now accounts for 22% of the overall medical equipment and supplies market in Turkey. The Turkish market is primed for further growth driven by attractive demographics, rising per capita income levels, growing expenditure on healthcare and increasing demand for high quality healthcare services. This demand has been further accelerated by growing penetration in the private medical insurance sector and a surge in medical tourism, with Turkey being ranked among the top 10 medical tourism destinations globally.
Abraaj, in partnership with the Balçık family, will focus on increasing the production capacity, expanding the existing sales and distribution network and further enhancing the Company’s product offering in the disposable medical supplies sector. Growth plans include the extension of the existing Şanlıurfa factory, leading to the creation of additional employment opportunities in Şanlıurfa, and an investment in new machinery to optimize overall production capacity. Abraaj will also help improve the environmental, safety, social and governance practices in place at Yu-Ce Medical.
Commenting on the investment, Levent Yesildag, Director and Head of Anatolia Growth Capital Fund at The Abraaj Group, said: “Our investment in Yu-Ce Medical is aligned with the Anatolia Growth Capital Fund’s strategy of seeking strong, growth-oriented and well-managed companies in the developing regions of Anatolia. The Balçık family is highly experienced in the medical supplies field, and have successfully penetrated a market once dominated by imported products. We look forward to our partnership and intend to utilize our longstanding experience in the healthcare sector to jointly accelerate the growth of Yu-Ce Medical.”
Cengiz Balçık, General Manager at Yu-Ce Medical, added: “Abraaj’s successful track record in Turkey and depth of global operating expertise will help us move into our next phase of growth, increase our production capabilities and sales network, and strengthen our market position in the country. We are confident that Abraaj is the right partner for Yu-Ce Medical, and we look forward to working with the Abraaj team over the coming months and years.”
Abraaj’s Anatolia Growth Capital Fund invests in high growth companies in the less developed regions of Turkey, targeting 43 provinces with per capita incomes below 75% of the national average, offering substantial convergence opportunities and growth potential. In January 2015, Abraaj made Anatolia Growth Capital Fund’s inaugural investment in Kayseri-based BRN Sleep Products, a leading Turkish mattress and sleep products manufacturer, exporter and retailer.
The Abraaj Group has extensive healthcare investing experience, having deployed over US$900 million across 28 healthcare investments in global growth markets. Abraaj has been investing in Turkey since 2007, and its diversified portfolio includes leading e-commerce business Hepsiburada and dairy manufacturerYörsan Group.