Dubai-based Abraaj Group invests in Turkish medical supplies firm Yu-Ce Medical

The Abraaj Group has bought a stake in the Turkish medical supplies manufacturer Yu-Ce Medical as the private equity firm, one of the Middle East’s largest by assets, seeks to boost its investment in Turkey.

The acquisition is the second investment of the Dubai-based firm’s Anatolia Growth Capital Fund. Abraaj did not disclose the size of the stake or the value of the deal.

Yu-Ce Medical produces medical gauze, medical sponge and surgical sutures.

Turkey’s disposable medical supplies market has grown 11 per cent annually over the past five years and makes up 22 per cent of the country’s medical equipment and supplies market, according to Abraaj.

“The Turkish market is primed for further growth driven by attractive demographics, rising per capita income levels, growing expenditure on health care and increasing demand for high-quality healthcare services,” Abraaj said.

“This demand has been further accelerated by growing penetration in the private medical insurance sector and a surge in medical tourism, with Turkey being ranked among the top 10 medical tourism destinations globally.”

Abraaj, in partnership with Yu-Ce Medical’s founding Balcik family, will work on expanding the company’s production capacity and increasing its product offering. The Anatolia Growth Capital Fund invests in high-growth companies focusing on Anatolia’s developing provinces and regions.

In January, Abraaj bought a stake in the Turkish mattress maker BRN Sleep Products, its first investment from the fund.

Abraaj has invested more than US$900 million on 28 healthcare companies globally.

It has a diversified portfolio of investments in Turkey, which includes the e-commerce business Hepsiburada and dairy manufacturer Yorsan Group.

With assets of $9 billion, Abraaj owns stakes in several high-profile companies that include the low-cost carrier Air Arabia and the supermarket chasin Spinneys.