TPG, Actera concoct $2.1bn Turkish exit

TPG bought spirits maker Mey Icki, its first investment in Turkey, for $900m in 2006.

TPG Capital and minority stakeholder Actera Group stand to make a sizeable returns from their investment in Mey Icki, a Turkish producer of alcoholic beverages. Trade buyer Diageo, the London-headquartered owner of liquor brands including Johnnie Walker, Smirnoff and Captain Morgan, has agreed to purchase the company in a deal giving it an enterprise value of TL3.3 billion (€1.5 billion; $2.1 billion).

Mey Icki: set to provide
TPG investors with a
nice buzz from returns

The deal is expected to close sometime after June, according to a statement.

Texas-headquartered TPG led a buyout of Mey Icki for $900 million in 2006 alongside Istanbul-based Actera. It was the firm’s first investment in Turkey, whose private equity market has been undergoing rapid growth. The firm as of yet has not made any further investments in the country but continues to regard the emerging market as ripe for opportunities, said a spokesperson for TPG.

“Turkey is a substantial fast growing economy with a growing and increasingly affluent middle class and consumer spending is forecast to be twice the rate of GDP growth,” said Diageo in a statement.

Leaving intact Mey Icki’s current management team, Diageo said the brand will be wed into the company’s European business division.