Two-and-a-half months after it announced its foray into Turkey, Mahindra & Mahindra (M&M) has concluded its acquisition of Turkish farm equipment manufacturer Hisarlar Makina Sanayi ve Ticaret Anonim Şirketi (Hisarlar).
In a tweet earlier today, Rajesh Jejurikar, president and Chief Executive, Farm Equipment & Two Wheeler, M&M, confirmed: “We concluded our acquisition of Hisarlar in Turkey and had the first board meeting in Eskisehir. An exciting journey ahead.” To this, Mahindra Group chairman Anand Mahindra replied in a tweet, “Turkey is a key Agri market & ever since I joined M&M I've been hoping for a breakthrough there.”
M&M has invested 71 million Turkish Lira (equivalent to around Rs 120 crore/US$ 19 million at an exchange rate of 3.80 Turkish Lira per US$) in Hisarlar as fresh equity infusion into the company, which gives M&M a 75.1% equity stake. The association will help in growing the farm equipment business in Turkey and Europe. The balance shareholding will be with European Bank for Reconstruction and Development (EBRD), 18.7%; and the founding Turker family, 6.2%. Further, as part of the transaction, Darby Converging Europe Fund III will exit its investment.
At the time of the acquisition announcement Rajesh Jejurikar had said: “Hisarlar is a market leader with 45 percent market share in soil preparation equipment in Turkey. The acquisition of Hisarlar will enable Mahindra to expand its footprint in Turkey and Europe, making this entity a global manufacturing base for various farm implements and tractor cabins”.
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