New shareholders aim to develop business into a leading European player
The EBRD, Actera – the leading private equity investor in Turkey – and Esas Holding – a venture capital firm established by the Sabanci family – are acquiring a majority stake in Korozo Ambalaj, the leading Turkish producer of flexible packaging.
The new shareholders are moving to unlock the company’s growth potential and increase its competitiveness and integration in international markets. The EBRD believes that successful economies should be competitive, well-governed, green, inclusive, resilient and integrated.
Founded in Istanbul in 1973 by brothers Liya and Refael Duvenyaz, Korozo has grown to become a major manufacturer of flexible packaging in Europe and the largest in Turkey.
The company has nine plants across Turkey with a total capacity of 98 tonnes per year and is currently building a state-of-the-art facility in Çorlu, Tekirdag province, in the northern Marmara region, to expand production and boost exports. More than half of Korozo’s production is exported to 80 countries worldwide.
Jean Marc Peterschmitt, EBRD Managing Director for Industry, Commerce and Agribusiness, commented: “Korozo is a great example of an ambitious Turkish firm which has started as a family business and grown into a truly international player. We are proud to become shareholders and support the company in its next phase of development as it seeks to become one of Europe’s leading producers of flexible packaging. It is this spirit of entrepreneurship, fuelled by skills and ambition, that is the driving force of the Turkish economy.”
Jeki Mizrahi, CEO of Korozo, said: “This partnership is a big step forward that will accelerate Korozo’s growth and investments to achieve our vision of becoming a leading player in the European packaging industry. We will continue to contribute to the Turkish economy, drive market growth and add value for all our business partners.”
The EBRD’s equity investment comes with a US$ 1 million loan provided by the Clean Technology Fund (CTF) to help the company minimise waste and become more environmentally friendly. It is part of the EBRD’s Near-Zero Waste programme in Turkey which, with support from the CTF and EU, finances investments aimed at minimising waste and increasing resource efficiency in the industrial, agribusiness and municipal sectors.
The EBRD is a leading institutional investor in Turkey. It started investing in the country in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. Turkey is a top destination for the Bank’s finance, with €1.9 billion invested in 2016 alone. To date, the Bank has invested over €9 billion in Turkey through more than 220 projects across various sectors and has mobilised nearly €20 billion for these ventures from other sources of financing. Some 98 per cent of the Bank’s investments in Turkey are in the private sector.