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Washington, D.C., September 14, 2006
— The International Finance Corporation, the private sector arm of the World Bank Group, has invested €3 million in equity and €15 million in debt as part a consortium led by Bancroft II, L.P. in the acquisition of Standard Profil, a tier I rubber profile and weather strip manufacturer. The investment will support this midsize Turkish company’s growth into a leading supplier in the local and European automotive markets.
Standard Profil, an Istanbul-based company, is a respected and sizeable player in the domestic and European car parts industry. It was founded in 1977 and has annual sales of $95 million. The investment will increase Standard Profil’s competitiveness and support its export-oriented growth plans, including expansion of its manufacturing operations to Bulgaria.
"Shahbaz Mavaddat, IFC’s Director for Southern Europe and Central Asia, said, “We are very pleased with the successful completion of this project. The automotive industry is a key source of Turkish exports and has a positive impact on the country’s economy. We also appreciate the excellent cooperation with Bancroft on this transaction and look forward to expanding our activities through investments in similar companies across the region."
Dimitris Tsitsiragos, IFC’s Director for Global Manufacturing and Services, said, “IFC is a limited partner in Bancroft II, L.P. and we welcome the opportunity to make our first co-investment with the fund. Standard Profil is a leading company in Turkey’s automotive sector, which IFC has identified as having tremendous potential for high and stable growth.”
Fred Martin, Managing Partner of Bancroft Private Equity, LLP, said, “We are excited to support the highly capable and proven management team led by Standard Profil’s CEO, Rifat Kamhi, as the company continues to grow and gain market share. We are proud to support the team that created this competitive company and has developed it into one of Turkey’s manufacturing success stories.”
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit
www.ifc.org
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