17 Jul 2012
Investcorp’s Gulf Opportunity Fund, the private equity fund of Investcorp for the MENA region including Turkey, and Orka Group, one of Turkey’s leading and fastest growing menswear retailers, announced today that they have signed a definitive agreement whereby Investcorp’s Gulf Opportunity Fund will acquire a 30 percent stake in the Group.
Orka Group, through its brands Damat, Tween and D’S Damat, is a leading retailer of branded menswear in Turkey. Founded in 1986 by Süleyman and Halidun Orakçıoğlu with the introduction of its luxury brand Damat, the Group has become a respected international provider of luxury menswear. Orka’s fashion products are sold in more than 250 stores and 40 different countries around the world, including franchises.
Mohammed Al Shroogi, Investcorp’s President, Gulf Business, said: “Our third investment in Turkey comes in a sector, retail of branded and luxury products, in which we have unparalleled experience. Orka Group, with its high brand awareness and strong designs, has a huge growth potential both locally and internationally and we are excited to be part of its future successes.”
Orka Group’s Chairman of the Board, Süleyman Orakçıoğlu, said: “Bringing in an international growth investor is a major step in the development of our Group. It will allow Orka to achieve its full brand potential and expand into new markets. With an experienced investor such as Investcorp, Orka will have an ideal partner in becoming a top luxury menswear player on the international stage.”
The investment will enable the Orka Group to accelerate its growth in Turkey as well as in international markets.
The Turkish organised luxury menswear market is worth an estimated $7.4 billion and is expected to sustain its strong growth, supported by favourable demographics and increased consumer spending. Istanbul, which represents 40 per cent of the Turkish apparel retail market, is evolving into an international shopping destination and is expected to benefit from increasing sales to tourists.
This transaction is the sixth investment by Investcorp’s Gulf Opportunity Fund, the private equity fund of Investcorp for the MENA region including Turkey. Investcorp exited successfully Redington Gulf, its first investment through the fund, earlier this year.
Since inception, Investcorp has acquired 102 companies in North America, Europe and MENA representing $ 33 billion in value. These investments include prestigious luxury brands such as Gucci, Tiffany & Co., Saks Fifth Avenue, Chaumet, Breguet, Ebel and Carter’s.