ANKARA: Automobile maker Mahindra & Mahindra (M&M) on Friday said it will acquire 75.1% equity stake in Turkey’s agri-equipment company Hisarlar for approximately Rs 127 crore in an all-cash deal. The acquisition, to be completed in three months, will give the Indian tractor maker a foothold in Turkey while expanding its presence in other European markets. Mahindra has an on-ground presence majorly in India, China, the US and some other export markets in the tractor business. “The acquisition is a part of the group’s bigger globalisation strategy…Turkey is a very strategic market,” Pawan Goenka, managing director, M&M, said.
M&M will have majority in the board and control the management of Hisarlar, after its investment into the company. “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,” Rajesh Jejurikar, president and chief executive, Farm Equipment & Two Wheeler, M&M, said.
Goenka said M&M will retain the core management team of Hisarlar and provide strategic guidance to the company. The balance shareholding will be with European Bank for Reconstruction and Development (EBRD) at 18.7%, and the founding Turker family has 6.2%. Further, as part of the transaction, Darby Converging Europe Fund III will exit its investment in the company. Hisarlar also makes tractor cabins and other off-road equipments.
