Diageo buys Turkish spirits producer

Published: 21 February, 2011

Diageo has bought Turkey's leading spirits company, Mey Içki, in a deal worth £1.3 billion.

The company is the market leader in raki and vodka and also has "an extensive nationwide sales and distribution network," Diageo said. Net sales are around £300 million a year, it added.

The deal will be completed in the second half of calendar 2011, subject to regulatory clearances.

Diageo described Turkey as "a substantial fast growing economy with a growing and increasingly affluent middle class". Mey Içki will be consolidated as part of Diageo Europe and will continue to operate under the current management team.

Diageo chief executive Paul Walsh said: "Turkey is an attractive, growing market for Diageo with strong GDP growth. The acquisition of Mey Içki transforms our existing position in this fast growing spirits market. It gives us leading brands in the major local spirits categories, a superior distribution network and a proven management team.

"The acquisition of Mey Içki will also provide Diageo with an outstanding platform from which to accelerate the long term growth of our premium international spirits brands in Turkey."

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