Diageo to acquire Turkish distiller Mey Icki for $2.1 billion

Diageo Plc, the world's biggest spirits maker today said it was buying Turkish distiller Mey Icki, for an enterprise value of 3.3 billion Turkish lira ($2.1 billion) to add Turkey's popular drink Raki to its stable of alcoholic beverages.

London-based Diageo, the owner of well-known brands like Johnnie Walker, Bushmills whiskies, Smirnoff and Baileys among others, will be acquiring Mey Icki from investment firms TPG Capital (TPG) and Actera.

Mey Içki is the leading spirits producer and distributor in Turkey. It is the market leader in Raki, the biggest spirits category in Turkey, and has a leading position in vodka. In addition the company has an extensive nationwide sales and distribution network.

Aniseed-flavoured Raki is considered the national drink in Turkey and is, by far, the leading category in the spirits market representing 80 per cent of total spirits consumed.

Mey Içki's Yeni Raki is the category leader with retail sales of over $765 million, which puts it amongst the largest global spirit brands.

Vodka accounts for around 11 per cent of Mey Icki's total sales with flagship brands such as Binboa and Istanblue.