Yıldız Holding, has ascended to the position of the third biggest biscuit manufacturer in the World after acquiring the world’s sixth biggest biscuit manufacturer United Biscuits. United Biscuits has a total of 14 factories, 11 in Europe and 1 each in Nigeria, Saudi Arabia and India. The company has 7.171 employees.

Having acquired the premium chocolate brand Godiva and the USA’s long-established confectionery company DeMets, Yıldız Holding has made its major stride in globalization with the acquisition of United Biscuits. Yıldız holding has executed a purchase agreement with United Biscuits, the biscuit and snacks company which had been on sale for some time. HSBC and Ünlü&Co companies have intermediated during the process of the acquisition United Biscuits which was owned by Blackstone and PAI private equity funds. Deloitte has provided consultancy services to Yıldız holding during the process whereas Linklaters and Yüksel Karkın Küçük firms have provided legal counselling services. Yıldız Holding is planning to implement the independent management model to United Biscuits which the holding had applied to Godiva and obtained successful results. Incorporated in 1948 with the merger of McVittie Price and MacFarlane Lang’ and Carr’s which was established in Scotland in 1830, United Biscuits owns 14 factories 7 of which are in England. The company has a total of 7.171 employees of which 4.613 of them are in England and 2.558 are outside England. The sales of the company as of the end of 2013 have been 1 billion 146 million Pounds.

TO GROW IN NEW MARKETS While about to strengthen its position in the in the main business field of biscuit and snacks market, Yıldız Holding will continue to expand its existing business activities by means of additional manufacturing capacities, new markets, the distribution network of the two companies and with new products. The complementary product and market structure of both companies is of qualification to render both Ülker and United Biscuits successful in the international markets. Yıldız Holding will possess the opportunity to increase its market shares in African countries and India along with European countries like France and the Netherlands apart from England where United Biscuits is in the leading position. Moreover, United Biscuits will have the chance to grow in the new markets where Yıldız Holding is carrying active business such as Turkey, Middle East, North America, China and Japan. Besides, both companies will catch the upper hand in the competition by joining their experiences and knowledge in R&D and new product development. WORLD’S THIRD BIGGEST BISCUIT MANUFACTURER IN THE 70TH ANNIVERSARY In 1944, four years before United Biscuits, Yıldız Holding which started off with Ülker Petibör, has risen to the position of the world’s third biggest biscuit manufacturer with this acquisition move in the company’s 70th anniversary. Talking about the acquisition, Yıldız Holding Chairman of the Board of Executives Murat Ülker said that: “The underlying philosophy of this journey that we set off by producing 200kg of biscuits annually in the workshop in Nohutçu Han belongs to my father and my uncle which is that “Persistent working, honesty and quality production underlies the success.” This philosophy has not only made us a brand in Turkey over the 70 years, but has made us become globalized.” NOT ONLY TO THE BENEFIT OF YILDIZ HOLDING BUT TO TURKEY AS WELL Stating that Yıldız Holding has focused on what they do best and that they have not deviated from this path during growth, Mr. Ülker added that: “Our main business is food. All the investments we have made are towards becoming a prominent figure in the world in this regard. Godiva and DeMets have been two investments that we have made in this context. United Biscuits was a good opportunity at this point. And we wanted to seize the opportunity. I see the acquisition of this multitude as an advantage not only to the benefit of Yıldız Holding but also to the benefit of our country. Likewise, I think that United Biscuit will also benefit from this change in the shareholders because Yıldız Holding is stronger in the markets in which United Biscuit is less strong and we also occupy the upper hand in some products’ industrial know-hows.”

THE GROWTH OF UB IN THE NEW MARKETS HAS PLAYED A GREAT ROLE IN THE ACQUSITION Three times bigger than its closest rival and with a market share of 26% in England’s biscuit market, the company has made a move in exportation and ventured into new markets in the recent years. Only acquiring 5% of its sales from markets outside England and Northern Europe five years ago, the company has achieved acquiring 15% of its income from the new markets by the end of 2013. Saudi Arabia, India, Nigeria and Australia are amongst the biggest markets of the company which are outside England and Northern Europe. The greatest growth potentials in the foreign markets seem to belong to the regions of Africa, Middle East and China.

Saying that United Biscuits’ present product range supports Yıdlız Holding’s vision of global leadership in snacks sector, Yıldız Holding Financial Affairs Manager Dr. Cem Karakaş told that: “Our strategy of growth in the Chinese, Indian and African markets overlap with United Biscuits’ present operations in these countries. The company has achieved a average annual growth of approx. 19,4% in the international markets apart from England and Northern Europe in 2011-2014. Annual average of approx. 16% is estimated until 2017. These estimations have been significant criterion in the acquisition.”

UNITED BISCUITS IN NUMBERS Total Sales: 2013 (1.146 million Pounds) Manufacturing in: England, France, Holland, Belgium, Saudi Arabia, Nigeria, India Number of factories: 14 Number of employees: 7.171 Major brands: McVitie’s Digestives, McVitie’s Jaffa Cakes, McVitie’s Hobnobs, Jacobs Crackers, Carr’s, Mini Cheddars, Go Ahead