Investcorp’s acquisition of a majority stake in plant propagation company Agromillora values the business at roughly €250 million, sources told Agri Investor.
The global manager of alternative investments bought out Spanish private equity firm Nazca – which held a nearly 50 percent stake in the company – and purchased additional minority interests.
The €250 million enterprise value puts the total Investcorp investment around €125 million, according to a source with knowledge of the deal.
The deal highlights the significant growth that Barcelona-based Agromillora has seen in recent years. Nazca made an initial investment of just €15 million in 2013 and a later €5 million capital increase for its nearly 50 percent stake, the source noted.
Agromillora plans to produce and sell more than 65 million plants worldwide in 2016.
“Demand for Agromillora’s products and super high-density plantation models is supported by favourable long-term trends driven by increasing population, GDP per capita and, ultimately, food consumption,” said Daniel Lopez-Cruz, managing director in Investcorp’s European Corporate Investment group.
“Agromillora’s diversified revenue mix across geographies and crops, combined with the company’s track record as an innovator in its industry, make it ideally positioned to continue its successful expansion into new markets.”
Agromillora supplies olive, nut and fruit trees for high-density plantations, as well as grafted plants for vineyards. Its growth in recent years has led to international expansion in the Americas, Australia and the Middle East.
The company has 11 production facilities in nine countries, reaching a market of more than 300 nurseries and 1,500 growers in more than 25 different countries, and employs more than 1,300 employees worldwide, according to the firm.
It was a pioneer in the production and marketing of trees for high yielding olive orchards with high density planting and since then it has been also promoting similar improvements for almonds, citrus and other fruit trees.
“Investcorp’s strong track record of working with companies across international markets, particularly with those who are leaders in technological innovation and research and development, makes them an ideal partner for us,” said Jordi Mateu, managing director of Agromillora.
As of 30 June 2016, Bahrain-based Investcorp had $10.8 billion in total assets under management. In August the investment manager exited Crisps Topco Limited, the parent company of snack food brand Tyrrells, through a £300 million ($391 million; €353 million) sale to Amplify Snack Brands.