Yu-Ce Medical is a leading medical gauze, medical sponge and surgical suture producer in Turkey

Plans to increase production capacity, expand sales and distribution network and further enhance product offering in the disposable medical supplies sector

Marks second investment from Abraaj's Anatolia Growth Capital Fund and the first ever private equity investment completed in Şanlıurfa

Istanbul, Turkey, 10 August 2015: The Abraaj Group ('Abraaj' or the 'Group'), a leading investor operating in global growth markets, today announced the acquisition, through one of its Funds, of a stake in Yü-Ce Tıbbi Gereçler İthalat İhracat Mümessillik Sanayi ve Ticaret A.Ş. ('Yu-Ce Medical' or the 'Company'), a leading disposable medical supplies manufacturer in Turkey. Yu-Ce Medical marks Abraaj's second investment from its Anatolia Growth Capital Fund and the first ever private equity investment completed in Şanlıurfa.

Established by Mr. Cengiz Balçık and Mr. Yümnü Balçık in 1995, Yu-Ce Medical began its operations as a medical supplies importer. In 2007, the Company started producing medical gauze and medical sponges in Şanlıurfa, and started manufacturing absorbable and non-absorbable surgical sutures in 2013.

Today, Yu-Ce Medical is a leading medical gauze and medical sponge producer, and among the few domestic surgical suture producers in Turkey. The Company carries out its manufacturing operations in two company-owned factories and has an established sales platform across Turkey, including a diversified customer base of more than 230 state, university and private hospitals and over 190 medical distributors.

The Turkish disposable medical supplies market has experienced an 11% annual growth rate in US$ terms over the last five years, and now accounts for 22% of the overall medical equipment and supplies market in Turkey. The Turkish market is primed for further growth driven by attractive demographics, rising per capita income levels, growing expenditure on healthcare and increasing demand for high quality healthcare services. This demand has been further accelerated by growing penetration in the private medical insurance sector and a surge in medical tourism, with Turkey being ranked among the top 10 medical tourism destinations globally.

Abraaj, in partnership with the Balçık family, will focus on increasing the production capacity, expanding the existing sales and distribution network and further enhancing the Company's product offering in the disposable medical supplies sector. Growth plans include the extension of the existing Şanlıurfa factory, leading to the creation of additional employment opportunities in Şanlıurfa, and an investment in new machinery to optimize overall production capacity. Abraaj will also help improve the environmental, safety, social and governance practices in place at Yu-Ce Medical.

Commenting on the investment, Levent Yesildag, Director and Head of Anatolia Growth Capital Fund at The Abraaj Group, said: "Our investment in Yu-Ce Medical is aligned with the Anatolia Growth Capital Fund's strategy of seeking strong, growth-oriented and well-managed companies in the developing regions of Anatolia. The Balçık family is highly experienced in the medical supplies field, and have successfully penetrated a market once dominated by imported products. We look forward to our partnership and intend to utilize our longstanding experience in the healthcare sector to jointly accelerate the growth of Yu-Ce Medical."

Cengiz Balçık, General Manager at Yu-Ce Medical, added: "Abraaj's successful track record in Turkey and depth of global operating expertise will help us move into our next phase of growth, increase our production capabilities and sales network, and strengthen our market position in the country. We are confident that Abraaj is the right partner for Yu-Ce Medical, and we look forward to working with the Abraaj team over the coming months and years."

Abraaj's Anatolia Growth Capital Fund invests in high growth companies in the less developed regions of Turkey, targeting 43 provinces with per capita incomes below 75% of the national average, offering substantial convergence opportunities and growth potential. In January 2015, Abraaj made Anatolia Growth Capital Fund's inaugural investment in Kayseri-based BRN Sleep Products, a leading Turkish mattress and sleep products manufacturer, exporter and retailer.

The Abraaj Group has extensive healthcare investing experience, having deployed over US$900 million across 28 healthcare investments in global growth markets. Abraaj has been investing in Turkey since 2007, and its diversified portfolio includes leading e-commerce business Hepsiburada and dairy manufacturer Yörsan Group.

For more information please contact:
Grace Chaoui
Finsbury
T: +971 (0)55 632 9593
E: grace.chaoui@finsbury.com

About THE ABRAAJ GROUP
The Abraaj Group ("Abraaj" or the "Group") is a leading private equity investor, purpose-built for operating in the growth markets of Africa, Asia, Latin America, the Middle East, and Turkey.

Employing over 300 people, Abraaj has over 25 offices spread across five regions with hubs in Dubai, Istanbul, Mexico City, Nairobi and Singapore. The Group currently manages c. US$ 9 billion across regional, sector and country-specific Funds.

Abraaj has realized c. US$ 5.1 billion from over 70 full and partial exits, and Funds managed by the Group have made over 140 investments across 10 sectors including consumer, energy, financials, healthcare and utilities. The Group is committed to the highest environmental, stakeholder engagement and corporate governance standards and is a signatory to the United Nations-backed Principles for Responsible Investment and the United Nations Global Compact. Abraaj's founder, Arif Naqvi, was appointed to the United Nations Global Compact Board by UN Secretary-General Ban Ki-moon in 2012 and to the Interpol Foundation Board in 2014.

This publication is issued by Abraaj Capital Limited ("ACLD" or the "Firm"), a member of The Abraaj Group that is authorised and regulated by the Dubai Financial Services Authority ("DFSA"). Several Group members are regulated by a number of international regulatory authorities including the DFSA under whose rules ACLD has issued this publication.

About ANATOLIA GROWTH CAPITAL FUND
Anatolia Growth Capital Fund is backed by G43 Anatolian Venture Capital Fund Project ("Project") under the Competitive Sectors Programme ("Programme") co-financed by the Republic of Turkey and the European Union, with further financial support from the Istanbul Venture Capital Initiative (iVCi) and The Abraaj Group.

The Programme aims to eliminate economic and social disparities among regions, hence increasing the competitiveness of the Turkish economy and facilitating its integration in the European Union. The Competitive Sectors Programme is managed by the DG for European Union and Foreign Affairs of the Ministry of Science, Industry and Technology ("Ministry"). In the context of the Project, the Ministry acts as the Operating Structure of the Programme, the European Investment Fund ("EIF") is responsible for establishment of the fund and implementation of the Project and the SME Development Organisation of Turkey ("KOSGEB") is the end-recipient institution, which is responsible for overall execution and performance. 

About COMPETITIVE SECTORS PROGRAMME
Small businesses are the backbone of the Turkish economy. The Competitive Sectors Programme is a joint initiative between the Ministry of Science, Industry and Technology and the European Union that aims to strengthen the competitive power of those small enterprises in Turkey and abroad. The Competitive Sectors Programme has been operating since 2007 under the financial cooperation agreement between Turkey and the European Union with a budget of c. EUR 600 million. It is distributing resources to 43 provinces to meet the needs of small businesses, establish joint facilities, add value to production through innovative technologies, facilitate access to financial resources and develop tourism infrastructure.

For more information on the Competitive Sectors Programme, the support that Turkey and the European Union provide for strengthening economy across Turkey, and the successes that have been achieved so far, as well as details on the application procedures, please visit the programme's website at ipa.sanayi.gov.tr 

About KOSGEB
Established in 1990, KOSGEB is the public agency tasked with supporting the development of Turkish SMEs through various programmes and services. KOSGEB's operations include operation of public incubation centres and joint use technology service centres. Based in Ankara, KOSGEB operates an extensive network of regional offices and centres. KOSGEB participates in several specialised financing vehicles for SMEs in Turkey.

About EIF
EIF, the European Union's specialised financial body for Small and Medium Enterprises (SMEs) and the risk capital arm of the European Investment Bank Group, is the adviser to iVCi. EIF's central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment.

About iVCi
Established in November 2007, Istanbul Venture Capital Initiative (iVCi) (http://www.ivci.com.tr) is Turkey's first ever dedicated fund of funds and co-investment programme. Total fund commitments amount to EUR 160 million from public and private investors such as the Small and Medium Industry Development Organisation of Turkey (KOSGEB), the Technology Development Foundation of Turkey (TTGV), the Development Bank of Turkey (TKB), Garanti Bank, the National Bank of Greece Group (NBG Group) and the European Investment Fund (EIF). EIF is the adviser to iVCi.

© Press Release 2015