It hopes to acquire the International Biscuit Company (IBC) – a wholly owned subsidiary of United Biscuits – that operates a facility in Riyadh, Saudi Arabia, and owns McVities sales and distribution rights in MENA.
Synergies for Ülker in MENA
Ülker and United Biscuits are both part of Yildiz Holding’s confectionery unit pladis.
However, the move would see MENA McVitie’s rights switch from United Biscuits to Ülker.
Ülker says the IBC acquisition will also accelerate its own growth in the region.
Ülker has eight global facilities - one in Saudi Arabia, one in Egypt and six in Turkey. IBC gives Ülker a second facility in Saudi Arabia and a platform to expand in the Middle East & North Africa.
Yildiz Holding - the owner of United Biscuits and Ülker - acquired United Biscuits in 2014.
Yildiz created global confectionery unit ‘pladis’ in June last year, which is comprised of United Biscuits, Ülker (Ülker Bisküvi), Godiva Chocolatier and DeMet’s Candy Company.
Ülker Bisküvi’s sales volumes were down 9.4% year-on-year in the third quarter, but it grew revenues 0.9% to TL 815m ($228m).
International operations outside Turkey accounted for 23.6% of revenues in Q3, the company reported in November last year.
Its international chocolate revenues increased by 18.3%, but overseas biscuit revenues fell 5.2% in Q3.