2018's first acquisiton by Tekfen

Tekfen Group acquired 90% of Alanar Meyve, one of the largest premium fruit producers in Turkey, and Alara Fidan, its sister company, for a total sum of TL50 million. Murat Gigin, Chairman of the Board of Tekfen Holding, said, "As Tekfen, we have been the leader of agricultural inputs for years with our Toros Tarım brand. As part of our Holding's strategy to broaden our agriculture business, we are now acquiring a leading brand in agricultural production." Tekfen Holding will invest a further TL160 million in Alanar Meyve and Alara Fidan between 2018 and 2020.

Tekfen Group, which has been the leader and pioneer of every business it has been active in since the day it was founded, is making the first acquisition of 2018 in agriculture. A contract has been signed between Tekfen Tarımsal Araştırma Üretim ve Pazarlama A.Ş., one of the Tekfen Group companies, and Alanar Meyve, one of the largest fruit producers and exporters of Turkey, and its sister company Alara Fidan, concerning the sale of 90% of both companies for a sum of TL49.6 million. The transfer of shares will be effected following the approval of the Competition Authority. Yavuz Taner, founder of both companies and one of the doyens of the fruit sector in Turkey, will remain as a shareholder retaining 10% of both companies' shares and continue to lend his knowledge and experience in the service of the Turkish agricultural industry under Tekfen.

Tekfen will continue its growth in agriculture

Following the acquisition, Tekfen will make a new investment of approximately TL160 million in both companies between 2018 and 2020 for construction and the purchase of new orchards and machinery. Tekfen Group has been the leader of the agricultural input sector for 40 years with its Toros Tarım brand producing fertilizers, seeds, seedlings, and saplings; this acquisition demonstrates the Group's determination and vision regarding agricultural production as well. Murat Gigin, Chairman of the Board of Tekfen Holding, stated that they had been following the activities of both companies for a long time, adding, "As a company that meets the fundamental inputs Turkish farmers need for correct agricultural production such as plant nutrients, seeds, seedlings, and saplings, we will extend our presence to agricultural production as well. I believe that it is an important responsibility befitting Tekfen to go beyond mere commercial targets and bring efficiency to agricultural production through corporate discipline and financial prowess."

Orchards will triple in size, aiming for increased exports Murat Gigin also said that Toros Agri had produced cherry saplings at the tissue culture laboratories in Agripark, Adana for Alanar, 90% of whose revenue is based on exports, and that the cooperation between the two companies went back many years. Gigin added: "The companies we have added to our Group are among the select few in the fruit sector and send 80% of their exports to Europe, especially to Germany and the UK. Alanar is known for its high-quality products and on-time deliveries in the markets it has been active for years, and we will aim to make it a similarly major player in China and the Far East markets. China imports 500 million dollars' worth of cherries each year, strictly from companies and plants accredited by the Turkish Ministry of Food, Agriculture and Livestock. Alanar Meyve is one of the nine such companies, and owns two of the 13 plants that have licence for export. The new Silk Road railway starting from Xi'an, China will decrease transportation costs, as a result of which we expect these markets to constitute half of Alanar Meyve's total exports. In addition, we aim to develop trade ties with producers in markets such as South America, India, Uzbekistan, South Africa, and Peru in order to overcome seasonal limitations in product procurement and extend sales to the whole year."

Following the acquisition, 6 million square meters of land will be added to the already existing 3.6 million, and the total turnover target for 2028 is around TL800 million, Gigin said, adding that the production capacity, which was 3000 tons in 2017, will be increased to 15 thousand tons by 2028, and together with the 20 thousand tons procured from producers, the total export target is 35 thousand tons.

A great instance of cooperation for Turkey

Yavuz Taner, founder of both companies and regarded as one of the doyens of the sector with his 40 years of experience, emphasized Turkey's big potential in fruit exports in the future. Taner said he will continue to share his experience under Tekfen, adding, "We have seen significant increases in fruit production in Turkey during the last decade. As a result of the R&D work we conducted at Alanar, we have found the right product among 65 types of cherry that can be kept for as long as 30-35 days and has a shelf life of 10 days. We want to continue our rapid growth in the Far East markets, especially in Hong Kong, with direct exports to China. Once the Silk Road railway becomes fully operational, China and the Far East will become important markets for Turkey. This potential motivated us to increase our investments. We were convinced that this leap forward would best be done under Tekfen Group. Turkish agriculture will greatly benefit from this acquisition."

About Alanar Meyve and Alara Fidan...

Alanar Meyve is active in fruit production and trade. Approximately 30% of the fruits it sells are grown in its own orchards, while the remaining 70% is procured from other producers. Its main products are cherry, fig, pomegranate, and apricot, although it also produces apple, plum, Japanese persimmon, chestnut, peach, and nectarine. Total fruit sales are expected to rise from an annual 10 thousand tons to above 35 thousand tons in the decade following the acquisition as a result of new investments. Alara Fidan grows and sells saplings in addition to fruit production and trade. Apart from local sales and exports, Alara Fidan grows saplings to be used in Alanar Meyve's orchards. In 2017, about 80% of the exports of both companies went to Europe, especially Germany and the UK. Far East countries make up only 10% of exports, logistical solutions for the Far East market such as air cargo exports are expected to gradually increase this figure to 50%.