The global rigid film producer Klöckner Pentaplast will acquire Farmamak from Gözde Girişim Sermayesi Yatırım Ortaklığı A.Ş. (Gözde Girişim). Farmamak will operate as a subsidiary within the Klöckner Pentaplast Group.
Klöckner Pentaplast, a world-leading producer of rigid films for the pharmaceutical, medical devices, food and consumer packaging and beverages, has signed a definitive agreement to acquire the rigid film producer Farmamak. Farmamak is a leading rigid film producer in Turkey (and the surrounding regions) and currently resides under Gözde Girişim.
“We are excited for our first acquisition since 2011, together – with Farmamak as a local leader – this transaction allows us to improve our customer focus in Turkey and throughout the Middle East to improve our regional service and capabilities,” commented Wayne M. Hewett, Chief Executive Officer, Klöckner Pentaplast.
“Always a pioneer and innovator in its field, Farmamak introduced many industry firsts and achieved sustainable growth over a number of years. I am sure that under the ownership of Klöckner Pentaplast, the business will further build on this solid heritage and see further growth,” explained Gözde Girişim CEO Mustafa Aydemir.
Farmamak, with sales of TRY 155 million (EUR 47 million), employs around 230 people and its production site is located in Gebze, Turkey. “Integrating Farmamak into the Klöckner Pentaplast Group shows great confidence in the potential of our company and our employees and brings more opportunities in the market to unlock further growth,” said Kurt Kuruç, Managing Director of Farmamak.
The transaction is subject to approval by the competition authorities. Until such approval is granted, Klöckner Pentaplast and Farmamak will operate independently.
Interview – Umit Akin – Akin Law Office:
Please tell me about your involvement in the deal?
I have served as in-house counsel and vice president at international companies for over a decade as I was in charge of domestic and international legal and regulatory affairs and investments reporting directly to the Board, the Chairman and the CEO. I also used to have chairs on the boards of numerous domestic and international subsidiaries of same group of companies. My experience of lecturing at various private and public Universities should also be noted.
Over two decades of broad-based experience in academic lecturer, general counsel and senior executive roles with principal law schools in Turkey and Turkey-based international group of companies, I had extensive experience in M&A projects on both buyer and seller sides, as well as corporate governance, international investments, competition law, privatisations and public procurement law experience, which has helped my office quickly become one of the leading full-service law firms in Istanbul since its establishment on 2012. The Office now has a broad client portfolio that consists of domestic and international investors operating in various sectors such as telecommunications, energy, media, automotive, real estate, education, and food and beverages.
Yildiz Holding has become one of our most valuable clients for years. Our office has been successfully representing and assisting Yildiz Holding on various M&A projects. I believe the reason Yildiz Holding decided to work with our office is down to the quality of our services, as we excel at managing and limiting risks through preventive measures; being decisive and acting in line with a strong ethical code.
Why is this a good deal for all involved?
We, all the lawyers of both buyer and seller, managed deal negotiations successfully and succeeded in finalising all the agreements, which was satisfactory for all parties involved and in parallel to joint understandings of our clients.
Our excessive expertise in representing both buyer and seller sides in various M&A projects also helped in understanding and creating solutions to the claims of the seller, and eased the deal negotiations.
What challenges arose? How did you navigate them?
Advising your clients on the seller side in such complex projects, where multiple interested parties and specialists are involved, is always a challenging exercise. Time pressure was applied by demanding clients, as I have always been asked how quickly I can return the documents with my remarks.