Borusan claims sector leadership with buyout

ISTANBUL

Borusan Holding chief executive Uğur shakes hand with Aygüler of Balnak.

Borusan Holding, a local conglomorate, has acquired all shares in Balnak Logistics, increasing its estimated logistics revenue in 2012 to $600 million. The acquisition is subject to regulatory approval
Borusan Holding chief executive Uğur shakes hand with Aygüler of Balnak.

orusan Logistics, a subsidiary of the multi-sector Borusan Holding, has acquired all shares in Balnak, forming the most profitable logistics company in Turkey.

Total revenue for the two companies in 2012 is estimated at around $600 million. The companies employ some 4,000 people and have a total of around 10,000 consumers, Borusan has said.

The merger, which still requires approval from the Competition Board, will create synergy in the domestic logistics sector, Borusan Holding Chief Executive Agah Uğur said in a press release yesterday.

Strategic planning

“Our strategic planning includes acquisitions we believe will create synergy and accelerate our growth along with investments in organic growth. Borusan Logistics’ Balnak acquisition is an important step in materializing this strategy,” Uğur said.

Balnak’s founding chairman, Lütfi Aygüler, said he will always feel proud of Balnak logistics and its employees.

Ünlü & Co consulted Borusan, while Raiffeisen Investment supported Balnak during the merger process.

Borusan Logistics was founded in 1973 under the name Boru Transport to provide services to its sister companies under Borusan Holding before a reconstruction in the year 2000. It is highly active in the Gulf region, the Netherlands, Eastern Europe, the U.S., Kazakhstan, Syria, Iraq and Lebanon.

Borusan Logistics has 230,000 square meters of depots across Turkey and the Borusan Port in the northwestern province of Bursa is an important export and import gate for the company.

Founded in 1986, Balnak is active in all modes of transportation. It is particularly experienced in the transportation and logistics of fast-consuming goods, retail, textiles, automotives and chemicals with strong North African ties.

A 46 percent stake in Balnak belongs to Great Circle Capital and Aygüler holds the remaining shares. It runs a sum of 180,000 square meters of depots and bonded warehouses on both sides of Istanbul, in addition to smaller ones in other parts of the country.