Argus in Talks to Sell Stake in Turkish Packaging Firm Kalenobel

Wednesday, May 11, 2016

European private equity firm Argus Capital is in talks to sell its stake in Turkish packaging company Kalenobel, three sources have told Reuters, as the country's fast-growing packaging industry draws investors.

The deal comes six years after Argus acquired 50 percent of Kalenobel, which focuses mainly on food packaging and exports to 60 countries.

Kalenobel is a private firm and does not release financial reports publicly. According to the Istanbul Chamber of Industry it had sales of 143.6 million lira ($50 million) in 2014, placing it among the top 1,000 firms in Turkey.

Both strategic players and private equity firms are showing interest in the sale, all three of the sources said.

Kalenobel's head office was not immediately available to comment.

Argus Capital, focused on investments in central and eastern Europe, is not making any new investments and is in the process of divesting its portfolio, according to its website.

Turkish packaging companies have been attracting European strategic players for some time as the market is seen as having more potential with per-capita consumption of packaging at much lower levels compared to developed markets.

Mondi Group bought a majority stake in Tire Kutsan in 2007 for $106 million. Mondi Tire Kutsan was Turkey's 201st largest company with sales of 481.8 million lira in 2014, according to the Istanbul Chamber of Industry.

Greiner Packaging International acquired a majority stake in food packaging maker Teknik Plastik last year. Constantia bought a majority stake in food packaging maker Asas Ambalaj in 2011.

In the last five years, the average growth rate of the Turkish packaging industry has been 6 percent per year, and it is estimated to remain the same in the coming years, a presentation by the economy ministry said.

Despite the security problems in the region, Turkey still appears attractive to companies which are keen to develop a presence in the region and capture fast growth.


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