Anasayfa / Mattresses / EBRD and Abraaj invest in Turkish mattress maker BRN Sleep Products

EBRD and Abraaj invest in Turkish mattress maker BRN Sleep Products

3The website of EBRD, European Bank for Reconstruction and Development published the following article about BRN Sleep Products, a Kayseri based mattress manufacturer and the major exporter of Turkey:

Equity investment to boost growth of family firm

The European Bank for Reconstruction and Development (EBRD) and The Abraaj Group, a global investor in growth markets, are supporting the expansion of Turkish mattress and sleep product manufacturer BRN Sleep Products by acquiring a minority stake in the company.

The EBRD and Abraaj, through its Anatolia Growth Capital Fund, are making a joint equity investment in the firm, founded in 2006 by husbandand-wife team Mustafa and Berna İlter

The funding for the Anatolian company, which is based in Kayseri – the hub of Turkey’s furniture production – will support the firm’s next phase of growth, including the further development of its retail business and the expansion of production. BRN Sleep Products, known in Turkey as BRN Yatak Baza Ev Tekstili İnşaat Sanayi Ticaret Anonim Şirketi, started life as a micro family-run enterprise. In less than 10 years it has developed into a significant player – both in the export market, selling to over 50 countries, and locally, with 11 retail stores across Turkey. The company currently employs over 200 people and runs its own state-of-the-art factory in Kayseri.

Berna İlter, co-owner and General Manager of BRN Sleep Products, said: “We have experienced strong growth since our establishment nine years ago. In order for us to reach the next stage of our growth trajectory, we felt it would be beneficial to bring on board experienced investors such as Abraaj and the EBRD, who have solid track records in expanding businesses and creating further operational value. We look forward to working with them over the coming months and years.” 3,1

EBRD Director for Turkey, Michael Davey, commented: “The EBRD is pleased to partner with The Abraaj Group to support yet another successful Turkish company. Established in Anatolia, BRN Sleep Products is a great example of how fast-growing, family-run small and medium-sized enterprises can boost economic development in the regions of Turkey. Supporting such companies is at the heart of the EBRD’s strategy in Turkey.”

Selçuk Yorgancıoğlu, Partner and Regional Head of Turkey and Central Asia at The Abraaj Group, said: “Our investment in BRN Sleep Products is aligned with the Anatolia Growth Capital Fund’s strategy of seeking strong, growth-oriented and well-managed

companies in the developing provinces and regions of Anatolia. With exports to over 50 countries and expansion in the domestic market, we see an exciting opportunity to drive BRN Sleep Products’ growth in Turkey, regionally and beyond. We look forward to working with Ms. Berna İlter and Mr. Mustafa İlter, providing our financial and operational support to the business, and to partnering once again with the EBRD on investment opportunities in Turkey.” Abraaj’s Anatolia Growth Capital Fund invests in high-growth companies, focusing on the developing provinces and regions of Anatolia. The Fund targets 43 cities in Turkey with per capita incomes below 75 per cent of the national average, offering substantial convergence opportunities and growth potential. Investment in BRN Sleep Products marks Anatolia Growth Capital Fund’s first investment.

3,2The EBRD has already worked with The Abraaj Group, having acquired a majority stake in Yörsan, one of Turkey’s foremost producers and retailers of dairy products. The Bank started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. In 2014 Turkey became the EBRD’s leading recipient country, with new investments worth 1.4 billion. To date, the Bank has invested almost 5 billion in the country through 140 projects in infrastructure, energy, agribusiness, industry and finance.