According to Drink Business Review, Diageo has signed an agreement to buy Mey Icki, a spirits producer and distributor in Turkey, for an enterprise value of $2,098 million from TPG Capital and Actera.
Mey Icki holds the leading position in Raki, said to be the biggest spirits category in Turkey, and vodka markets. The company also has an extensive nationwide sales and distribution network. Mey Icki will be integrated as part of Diageo Europe and will continue to operate under the current management team.
“The acquisition meets our return criterion and delivers top line growth above the Diageo average, and margin expansion,” said Paul Walsh, CEO of Diageo. “This investment represents the continuation of our strategy to increase Diageo’s presence in those emerging markets, such as China and Vietnam, which have a rapidly growing middle class.”
The acquisition will be funded through existing cash resources and debt. The transaction is anticipated to be complete in the second half of 2011, and is contingent upon regulatory clearances.
