BC Partners to grow internationally with Migros Turkey
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London-based private equity company BC Partners plans to open new stores in neighboring countries with its newly-owned Turkish Migros, and Russia is on top of the target list. It also plans to offer shares to Migros' top executives, Fortune Turkey reported.
BC Partners aims to pursue Migros' market leader position in Turkey and internationally, a fund manager of the company told in an interview published in Fortune Turkey's May issue. "We want to continue and accelerate this growth. We are effectively investing in the company’s management and 14,000 employees who deserve most of the credit for Migros’ successful performance to date," Nikos Stathopoulos was quoted as saying.
BC Partners cut a deal with Koc Holding to buy a 50.8 percent stake in Migros for $1.53 billion. The deal is expected to be completed by end-May.
"We are considering other countries in the geographic area where current operations are. We would consider growing in those countries through organic expansion, or new openings, but we are considering a number of add-on acquisitions of smaller entities," company executive Francesco Conte said.
Migros, whose market share in the Turkish organized retail market is 22 percent, has operations in Kazakhstan, Azerbaijan, and Macedonia. It operates in Azerbaijan, Kazakhstan, Kyrgyzstan and Macedonia under the "Ramstore" brand and serves 300 million customers annually.
Fortune added BC Partners is also planning to return Migros to the Russian market. Koc had sold its stakes in Ramstore in Russia to its partner Enka group.
BC Partners officials also said they are planning to make stock offers to high-level executives of Migros, including chairman of the group, Bulend Ozaydinli. The complete handover had been held up by the need for regulatory approval from several countries and other formalities. Â