Paine Schwartz Fund V takes minority stake in Hendrix Genetics

The New York-based firm has continued to build out its animal health and nutrition capabilities with a Dutch company that specializes in breeding.

Paine Schwartz Partners has made an investment of an undisclosed size in Dutch animal genetics and technology company Hendrix Genetics.

Capital was deployed from the 2018-vintage Paine Schwartz Food Chain Fund V, which exceeded its $1.2 billion target to close on $1.45 billion in 2019.

Paine was joined by co-investors in the acquisition of a 50 percent stake in the company, the remaining 50 percent of which is held by co-founders Thijs Hendrix and Antoon van den Berg.

Hendrix Genetics was founded in 2005 and provides multi-species animal genetics, breeding and technology services. The company has breeding programs in turkeys, laying hens, traditional poultry, swine, salmon, trout and shrimp.

The Hendrix Genetics’ management team led by CEO Jolanda van Haarlem will continue operating the business, with support from Hendrix who is also president and chairman of the supervisory board, along with supervisory board member van den Berg.

“Following NPM Capital’s investment in 2015, this new investment from Paine Schwartz will help us to further accelerate growth through expansion into new markets and sustain our leadership in technology and R&D,” said Hendrix.

“This will result in driving the rapid improvement of genetics and breeding along with fundamental gains in genetic improvement for our customers. In Paine Schwartz, we are also gaining a partner that brings expertise in genetics and animal health and a shared commitment to addressing the needs for sustainable food chain solutions.”

Paine Schwartz chief executive Kevin Schwartz added: “This strategic investment in Hendrix Genetics is directly aligned with our long-term thesis of identifying companies that sustainably increase productivity in the production of agriculture commodities, which is required to feed an ever-growing global population.”

Paine Schwartz acquired food safety and quality testing platform Global ID in 2016, which has grown considerably over the last five years through mergers and acquisitions, as well as natural growth.

The company was rebranded as FoodChain ID in 2018 and acquired Italian organic certifier Bioagricert in 2017. Food safety services provider Quality Partner was added in 2018, which has operations in France, Belgium and Luxembourg.

Paine has also built out its animal nutrition capabilities with the 2018 acquisition of MS Biotec, a company providing products and services designed to maximize performance of beef feedlot and dairy producers.

Livestock health products producer Warburton Technology was added in 2019 and the pair were combined to create Paine’s Animal Health and Nutrition investment platform.