Kalekim Acquires 75% Stake in Lyksor Kimya A.Ş.

Kalekim acquires 75 percent stake in Lyksor Kimya A.Ş.

Kalekim, a leading brand in Turkey's building chemicals sector, continues its investments in line with growth targets. Kalekim, which pursued domestic and international investments in 2021 with the goal of becoming a larger and stronger company, most recently made an additional line investment of TRY 23 million in its Mardin facility. Starting 2022 with investment, Kalekim this time acquired a 75 percent stake in Lyksor Kimya A.Ş., one of the important companies in the construction materials sector, to further strengthen its portfolio in the building chemicals industry. Lyksor Kimya, operating in building chemicals and concrete technologies, stands out by producing the raw materials it needs in-house. Lyksor Kimya A.Ş., which continues production activities at its two facilities in İzmir and Diyarbakır, generates 13 percent of its sales from international markets. Haluk Alperat, Chief Financial Officer of Kale Holding, noted that Kalekim possesses significant potential and has achieved success, making it a very important asset for Turkey. "We have made an important acquisition to advance this value further. Lyksor Kimya A.Ş., with its production strength in the sector and rapid implementation of major projects, is a valuable step in line with our strategic objectives," he said. Timur Karaoğlu, General Manager of Kalekim, emphasizing that they continue to grow with new investment initiatives despite pandemic conditions, stated: "Lyksor Kimya A.Ş., producing its own required raw materials, holds a very important position in the sector with this characteristic. Lyksor Kimya, with its broad product range and production capacity, will strengthen our position especially in Turkey's construction materials market," he said. Kalekim, Turkey's global value in the building chemicals sector, continues to grow through new investment initiatives in line with its strategic objectives. In 2021, following its warehouse investment in France, Kalekim made an additional line investment of TRY 23 million in its Mardin facility to support international exports. In 2022, it entered by acquiring a 75 percent stake in Lyksor Kimya A.Ş. to further strengthen its construction materials sector portfolio. Founded in 2016 and operating in building chemicals and concrete technologies, Lyksor Kimya A.Ş. has sustained steady growth since its establishment through the strength gained from producing its own raw materials.

"We have taken another step towards a larger and stronger Kalekim"

Haluk Alperat, Chief Financial Officer of Kale Holding, expressed satisfaction at adding another link to their investments through Kalekim as a Kale Group, saying: "Kalekim, with its potential and achievements, is an important asset not only for Kale Group, but also for its sector and our country. To advance this value further and move towards greater goals, we embarked on a new journey in May 2021. At the beginning of this journey was Kalekim's public offering program. Following the successful completion of our public offering program, we began to take the steps we committed to one after another. In this context, we took our first step towards a larger and stronger Kalekim last year in Mardin. Due to its proximity to the Middle East market, which holds strategic importance for us, we made an additional line investment of TRY 23 million to our Mardin facility to support our international investments. Today, we are taking another step toward the domestic market by acquiring a 75 percent stake in Lyksor Kimya A.Ş., one of the important companies in the building chemicals sector. We believe this company, which has achieved major success in a short time in building chemicals and concrete technologies, will make an important contribution to our growth objectives. We wish that this acquisition, which will provide organic growth opportunities in concrete admixtures, paints, polyurethane and epoxy areas to our existing product portfolio in the construction materials sector, will be beneficial and fortunate for our Group, for Kalekim, and for our country."

"Lyksor Kimya A.Ş. will strengthen our capacity with its potential and capabilities"

Timur Karaoğlu, General Manager of Kalekim, who pointed out that Kalekim has pioneered the sector's development for 48 years with innovative products and applications in building chemicals, also stated: "Our Board of Directors decided to acquire 75 percent of the total shares of Lyksor Kimya A.Ş. for TRY 125 million, subject to price adjustment in accordance with the terms agreed in the contract on the closing date of the share transfer. Our journey, which began in 1973 with the production of ceramic adhesives in a single factory, currently continues at full pace in 9 separate facilities, including 2 in Balıkesir, located in İstanbul, Yozgat, Isparta, Mersin, Erzurum, Mardin and Tirana, the capital of Albania. Today, with Lyksor Kimya A.Ş., which will strengthen our production capacity, we are also adding İzmir and Diyarbakır to our production network. Lyksor Kimya A.Ş. is a company that has accomplished major projects in a short time through its production policy based on quality service and trust. Lyksor Kimya A.Ş., which can produce its own required raw materials and is an effective player in the global market with this strength, offers special additives to cement producers in addition to traditional cement chemicals, made from its own raw materials. The company's product range includes concrete and cement chemicals, raw materials used in their production, architectural concrete products, concrete curing and protective materials, concrete waterproofing additives, mineral grinding facilitators, macrosynthetic microfibers and steel fibers used in concrete. Lyksor Kimya A.Ş., with its broad product range and production capacity, will strengthen our position especially in Turkey's construction materials market."

Exports 13 percent of sales abroad

Lyksor Kimya A.Ş., which offers innovative products developed with its own raw materials to cement and concrete producers as well as chemical additive producers both domestically and internationally, carries out production at its two facilities with 3,600 square meters in İzmir Kemalpaşa and 800 square meters in Diyarbakır. The company, with annual production capacity of 100,000 tons of concrete admixtures, 10,000 polymers, 10,200 tons of water reducers, consistency retainers, set retarders and accelerators, 4,150 tons of calcium nitrate and nitrite, exports 13 percent of its sales to Georgia, Kosovo, Ukraine, Kazakhstan, Iran, Iraq, Algeria, Morocco and West African countries. Lyksor Kimya A.Ş., which ranks among the sector's strong companies with its potential, achieved significant success with approximately TRY 100 million in net sales in 2020, when the pandemic was effective, and approximately TRY 210 million in 2021.