M&M takes controlling stake in Turkish company Hisarlar

M&M takes controlling stake in Turkish company Hisarlar

 Mahindra and Mahindra (M&M) has acquired a 75.1% stake in Turkey-based Hisarlar Makina Sanayi ve Ticaret Anonim Şirketi (Hisarlar) for over Rs 125 crore. The acquisition marks M&M’s entry into Turkey, one of the largest farm equipment markets globally.

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 Turkey family, 6.2%. Further, as part of the transaction, Darby Converging Europe Fund III will exit its investment, M&M said.

Incorporated in 1977, Hisarlar has three business units namely agricultural machinery, tractor cabins and machinery components. The company has two production facilities in Western Turkey and employs 820 people. It has a 45% market share in domestic soil preparation equipment. It is also the largest cabin manufacturer in Turkey with 42% market share and has increased its tractor cabin production by 55% from 2012 to 2015. Revenues for Hisarlar in 2015, stood at $71 million and the company is EBITDA positive.

“Mahindra is the world’s number one tractor company by volume, with an on ground presence in India, the USA, China and Japan, besides many other export markets. Our strategy going forward is to globalise aggressively and also expand our portfolio to include various new categories of farm machinery. This acquisition is an important milestone in our globalisation journey,” M&M Managing Director Pawan Goenka said.

“Hisarlar is a market leader with 45% 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,” M&M farm equipment and two wheeler president and CEO Rajesh Jejurikar said.

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