Baker & McKenzie, working primarily through the Esin Attorney Partnership, its Turkish member firm, has advised the Carlyle Group on an investment exit that will likely rank as one of Turkey's largest this year.
The transaction involved the sale of 40% of the issued share capital of Medical Park Saglik Hizmetleri (Medical Park) to Turkven Private Equity. Shareholders Sancak Group and Usta Group also sold a percentage of their shares, which resulted in a majority stake sale. The deal was signed in late December and closed on 7 May 2014.
Medical Park is a leader in Turkey's healthcare sector and one of the country's largest healthcare groups, employing over 10,000 people. With hospitals located in several Turkish provinces, Medical Park has increased access to quality healthcare in Turkey and greatly contributed to elevating Turkey's healthcare standards. Founded by current Chairman of the Board Muharrem Usta in 1995, Medical Park's presence in Turkey quickly grew with the initial stake sale to the Sancak family in 2006.
The Carlyle Group is a United States-based global alternative asset management firm specializing in private equity. With 1,450 professionals in 34 offices around the world, Carlyle is one of the world’s largest investment firms. Carlyle MENA was established in 2007 to make investments in Turkey, North Africa, the Cooperation Council for the Arab States of the Gulf and the Northern Mediterranean regions.
In 2009, the law firm advised the promoters of Medical Park on the sale of 40% of their shares to The Carlyle Group's MENA Fund. According to Baker & McKenzie, since then, The Carlyle Group has worked with the management and other investment partners to double the turnover and increase the number of hospitals from 13 to 18.
The deal was assisted by a cross-border team lead by Esin Attorney Partnership Partners Ismail Esin and Asli Yigit and Baker & McKenzie’s Global Head of Private Equity Simon Hughes, based in London. Supporting lawyers included David Scott, Mine Guner, Eren Uclertopragi, Sitki Can Tulay, Guven Mavis, Orcun Solak and Binnaz Topaloglu.
Asli Yigit, Istanbul-based M&A Partner, commented: "Not only is The Carlyle Group deal expected to be one of the largest M&A deals in Turkey this year, it is a milestone for the healthcare sector since it involves the sale of 18 well-known hospitals, three medical centers, and four laboratories."
