This Turkish electric controls company manufactures a wide range of switch and socket products, group sockets, fuses, fuse boxes and accessories such as relays, grounded male plugs, grounded female plugs and grounded triple sockets. It has a 25-30% domestic market share in terms of sales volume, positioning it as the second largest company in this sector in Turkey. Its domestic sales/export ratio is around 56%/44% of the total net sales.
The Company has around 100 distributors in the domestic market and around 90 distributors in more than 50 different countries. It projects to generate total revenues around USD48mm and EBITDA around USD12mm in 2013. The Company’s headquarters and production facility are located in Istanbul, with a total closed area of around 16,000 sq m. Annual production capacity is 52.1 million pieces.
Financial Highlights
Turnover
- 2014P $54mn
- 2013P $47.9mn
- 2012 $42.9mn
- 2011 $43.1mn
- 2010 $35.7mn
EBITDA
- 2014P $13.9mn
- 2013 P $11.6mn
- 2012 $9.6mn
- 2011 $10.1mn
- 2010 $7.9mn
Investment Highlights
- Rapid Growth: Net Sales increased CAGR of 18% in USD terms between 2009 and 2012;
- Superior Profitability: Sustainable EBITDA margin of over 20%;
- Strong Position in the Market: The second largest player in the Turkish switch and socket market with a market share of 25-30% in volume terms;
- High Demand for New Residences: The urbanization rate increased to 77% from 25% over the past five decades. Approximately 650 thousand new residences are developed annually in Turkey;
- Strong Domestic Distribution Network: Comprehensive domestic dealer network comprising of ca. 100 dealers in Turkey;
- Successful Track Record on Exports: Exports to more than 50 countries with a network of around 90 distributors, significant market positions in selected markets.
Proposed Transaction
Shareholders are ready to start discussions for the sale of the Company’s shares, partially or fully, to an investor in order to create a synergy that could be mutually beneficial.