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Deal Maker of the Year Awards 2013 WINNER - MEHMET URCU DEAL: Techno Group acquires stake in Dogu Tip
NAME: Mehmet Urcu COMPANY: Istnvest Corporate Finance POSITION: Managing Partner TEL: +90 533 223 5506 EMAIL: mehmeturcu@istnvest.com WEBSITE: www.istnvest.com
BIO
Mehmet Urcu founded Istnvest Corporate Finance in early 2010. He currently works as Managing Partner of Istnvest and Chairman of the Board of Seto Seed & Fertilizer Inc. which is a major agriculture manufacturer. Prior to his involvement at Istnvest, Mehmet was CEO of Orion Investment, a Dubai based firm. He joined Orion Overseas Group from YF Securities owned by TSKB where he was an Executive Vice President. Previously at TSKB (largest investment bank in Turkey), Mehmet was a CEO of TSKB Securities. He started his financial career at Prudential Financial in the U.S. He then followed his U.S. career at Turkey Private Sector Program funded by USAID as an Executive Director. Mehmet Urcu has M.Sc. degree from Stevens Institute of Technology in New Jersey and a B.Sc.E.E. degree from Istanbul Technical University. He has several studies in management institutes.
Being as a Middle East and Pacific Rim focused investment banking boutique, Istnvest provides buy-side or sell-side advisory services in private equity transactions, mergers& acquisitons, and debt financing transactions. Given her strong hands-on, value added approach, Istnvest provides senior level attention to her clients.
DEAL OVERVIEW Q
Please summarise the transaction
Gulf Capital, one of the leading and most active alternative investment firms in the Middle East based in Abu Dhabi has purchased a 75 % stake in a Turkish diagnostic imaging company through one of its portfolio companies. Portfolio company is Techno Group Investment Holdings and the diagnostic imaging firm is Turkish outsourcing firm Dogu Tip.
Q What was your role within the transaction
Istnvest Corporate Finance was advising Gulf Capital from the very beginning of the assignment both in terms of developing the idea, identifying the market and the right targets. We have prepared a comprehensive sector report for their management. We have a strong relationship with Gulf Capital and their senior management. As the CEO of Techno
niche imaging outsourcing services. Gulf Capital will be expanding their geographical footprint into the promising Turkish healthcare market. The transaction is challenging in a sense that Turkey has launched a very ambitious plan to outsource many of its medical services.
Q
What other types of clients or transactions have you been involved with
Istnvest has a very strong pipeline of attractive investments for the time being. As far as some transactions, the due diligence works are in progress. We also advise Turkish industrial groups to acquire a stake in foreign companies in terms of their expansion plans. We will shortly disclose an acquisition in this nature in consumer durables sector. We have just closed a JV deal in Qatar. This project was successfully financed by Qatar Development Bank. We are advising a Canadian mining group to launch their IPO at Borsa Istanbul in January 2014.. We plan to close additional 4 to 5 transactions in Year 2014.
Group indicated, , Gulf Capital added a very strategic component to the Techno Group business model with the acquisition of Dogu Tip. We really understood their business model and expansion plans very well. Techno group already owns and manages 34 diagnostic centers in Egypt and Jordan. We knew where this acquisition would fit into their portfolio. This really helped us to facilitate the transaction.
Q
What were the challenges or difficulties presented
We initially introduced them a different diagnostic imaging company. Later on the process, we found out that it would not be a good fit for them. This has been a big difficulty for us but it helped our client to better understand the investment dynamics as well as the local culture. This transaction is a major move in Turkish healthcare sector as it is focused on
Q
What are your thoughts and predictions for 2014 and beyond
Turkey has attracted more than US$ 120 billion foreign direct investment since 2003.
Turkey is set
on a high growth path due to its strong economic fundamentals based on the political stability. The interim government has been pivotal in promoting the business environment. Government has helped foster private investments in Turkey through the passage of new regulations aimed to unblock billions of dollars in investments.
Turkey is also a major healthcare market which has undergone a very rapid transformation with around 11% CAGR. The country is also a major medical tourism hub for the patients from the Middle East region. It should be mentioned that the strong PPP programme in the healthcare sector which is expected to rise to US$ 65 billion in 2014.
TURKEY