Kuwait’s GIH Becomes Partners to Turkey’s Clothing Retailer YARGICI

Kuwait’s Global Investment House, or GIH, announced Sunday it is acquiring a stake in Yargıcı, a leading up-market women’s apparel and accessories retailer in Turkey. The undisclosed investment showed that interest toward the Turkish economy from the Persian Gulf is ongoing, despite the political turmoil in the region.

The acquisition was realized through Global Capital Management, the alternative asset-management arm of GIH. The companies revealed neither the acquisition value nor the share acquired in Yargıcı.

In its statement, GIH said Yargıcı opened its first international store in Paris last year. “The investment will support Yargıcı’s growth plans, focused on further penetration in Turkey and entry into major European and Middle Eastern markets,” the company said.

Yargıcı, which currently has 23 stores, aims to expand in France, Britain and major Gulf Cooperation Council countries.

In Turkey, Yargıcı plans to expand deeper into Anatolia with its new “shoes and bags” store format, while also introducing an extensive “lifestyle” store concept in Istanbul.

Aiming to access new markets

“The fund manager’s network will enhance Yargıcı’s ability to access new markets across Europe and the Gulf Cooperation Council,” said Emir Yargıcı, founder of the company.

The Turkish women’s apparel market had an estimated size of around $3.6 billion in 2010. It is expected to grow by 8 percent annually over the next five years.

“This investment gives us an excellent opportunity to back an innovative company to fulfill its growth aspirations and potential,” said Rajiv Nakani, a managing partner at Global Capital Management. “With its unique fashion line, strong and trusted brand, value proposition and premium store locations across Turkey and in Paris, Yargıcı is well positioned to expand both in the domestic and international markets.”

With this move, Yargıcı becomes the second investment of GIH in Turkey this year. In February, the company announced the acquisition of 80 percent of Bıçakçılar, a manufacturer of medical equipment and disposables and a distributor of cardiovascular and neurosurgery products.

GIH was advised by Esin Law Firm, PricewaterhouseCoopers and Erdikler, while Yargıcı was advised by 3 Seas Capital Partners and Pekin & Bayar.

May 8, 2011
SOURCE: Hürriyet Daily News