Darby Private Equity, the private equity arm of Franklin Templeton Investments, has agreed exit to its equity and mezzanine holdings in Turkish bottled water and beverage manufacturers Sirma as part of a strategic sale of a majority interest in Sirma to Danone.
The firm’s Darby Converging Europe Mezzanine Fund (DCEMF) made a mezzanine investment in Sirma in 2010 to provide long-term funding for the growth of the company. The fund made a follow-on equity and mezzanine investment in 2011 to finance Sirma’s new factory .
Robert Graffam, Darby’s senior managing director for Europe, said, “We are the first and leading mezzanine and equity fund with a dedicated presence in Turkey. This transaction reinforces our track record in supporting middle-market companies with long-term growth capital in the region.”
Burak Dalgin, Darby managing director added, “We have done six investments to date in Turkey and Sirma will be our third exit in Turkey. Two of these new investments and two of the exits, including the potential Sirma exit, happened over the past twelve months.”
DCEMF s focuses on providing growth capital to mid-market companies in Central and Eastern Europe. Sirma will be the eighth exit for the fund.
Darby was founded in 1994 by former US Secretary of the Treasury Nicholas Brady. Richard Frank joined the firm as CEO in 1997 after his career at the International Finance Corporation. In 2003, Darby became a fully owned subsidiary of NYSE-listed investment management firm Franklin Resources.
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