Erdemoğlu Holding, which now produces seven out of every 100 carpets sold in the world, will offer Merinos, which weaves approximately 40 million square meters of carpets per year, to the public. İbrahim Erdemoğlu, Chairman of the Board of Directors of Erdemoğlu Holding, said, "We aim to add half of the public offering proceeds to Merinos' capital and transfer the other half to the holding as a resource. We want to transfer some of that resource to Sasa."

Merinos, which was founded by his father Mehmet Erdemoğlu in the 1970s, is on its way to public offering. İbrahim Erdemoğlu, Chairman of the Board of Directors of Erdemoğlu Holding, who recently held a press conference at the Merinos plant in Gaziantep, said that their share of the carpet market in the world has reached 7 percent. Merinos produces one out of every four carpets sold in the US and one out of every three carpets sold in Europe. In Turkey, this rate is around a quarter.

Stating that they own all of Merinos’ shares, İbrahim Erdemoğlu said that they are now preparing to offer 25 percent of the company to the public. Erdemoğlu said, "We plan to realize the public offering in the fifth month of 2025. 50 percent of the shares to be offered to the public will be sold to foreign investors. Work on this is being carried out by HSBC and JP Morgan. A roadshow regarding the public offering will be held in London soon. After the year-end balance sheet is issued, we will apply to the Capital Markets Board (CMB). We aim to add half of the generated resources to Merinos' capital and transfer the other half to the holding as a resource. We want to transfer some of that resource to Sasa."

According to the information provided by Erdemoğlu, Merinos will close 2024 with a turnover of 530 million dollars. The year-end export amount will reach 480 million dollars. The cost of the MTR polyester chips investment, which will be in operation in the second half of 2025, is approximately 220 million dollars. The annual production capacity of that plant will be 350 thousand tons. The contribution of that investment to the turnover is calculated as 350-400 million dollars annually. Erdemoğlu stated that they expect Merinos' 2025 turnover to reach 1 billion dollars following the chip investment.

Carpet to Walmart

The company, which continuously weaves carpets on dozens of looms with the polyester yarns supplied by Sasa, exports 90 percent of its production. Erdemoğlu said, "The average kilogram unit price of carpet exports is 2 dollars. 42 percent of sales are dispatched to Europe and the UK, 38 percent to the US, 12 percent to the Middle East and Africa, and 8 percent to the domestic market.

Our biggest buyer in the US is Walmart. We sell to the world’s giants. Europeans and Americans replace their carpets frequently. The average carpet replacement period in these regions is six months. The Chinese are unable to compete with Merinos in machine-made carpets because our production is more efficient."

Merinos in Numbers

-Merino's asset value is at the level of 2 billion dollars. Nevertheless, the valuation of the company has not been made yet.

- It has three production facilities. The total number of employees in the plants is 4 thousand 700.

-The total cost of investments in 2024 is approximately 275 million dollars. 

-Merinos produces in an area of ​​900 thousand square meters.

-It produces about 40 million square meters of carpets annually.

-50 percent of the knitwear yarn in Turkey is produced by Akal Yarn, a subsidiary of Erdemoğlu.

Source of News: Hürriyet News