Cagdas Holding to buy company from German broadcasting giant Bertelsmann
In a surprise move last August, Bertelsmann, one of the world’s three biggest mass media giants, put its fastest-growing brand, Arvato, up for sale. The move came at a time when Arvato was apparently at the top of its game, with its Turkey operations alone employing more than 3,000 peopl in 10 locations in Istanbul, Ankara, Izmir, Elazig, Adana and Gumushane and contracts with companies such as Estee Lauder, IKEA and Samsung. With a turnover approaching 100 million euros, Arvato was even eyeing four companies in Turkey for purchase until a few years ago.
According to people familiar with the sales process, a sales plan for Arvato is now being adopted in Turkey. Bertelsmann is in talks with Cagdas Holding, a major investor in the tourism industry. The agreement will be signed shortly and Bertelsmann will transfer its Turkey operations to Cagdas.
With a turnover of more than 17.2 billion euros, Bertelsmann has 119,000 employees worldwide, television channels broadcasting in more than 50 countries, 30 radio stations and more than a thousand companies. Their most important brand is the television channel RTL. But the most noteworthy brand is Arvato.
Arvato has a 22-year history and currently employs 70,000. Operating in many fields from information technology to digital services, it is the fastest growing brand of the group with a turnover of 4.6 billion euros and entered Turkey in 2007. Drawing on an aggressive growth plan, the German company began to provide call services in 12 different languages, including Spanish, Greek and Russian.
Founded in 1987 in Istanbul and operating in many areas from mining to energy, Cagdas Holding’s flagship is construction. However, the holding also has a major stake in tourism, including the Swissotel in Bodrum. The Holding’s turnover is close to TRY 200 million, not including housing sales.
If the deal goes through, Arvato CRM will continue its presence in Turkey with Bertelsmann and operations will continue under its own name.