spot on organic & sustainable agriculture...spot on · organic & sustainable agriculture ·...

ORGANIC & SUSTAINABLE AGRICULTURE

SPOT ON

0

M&A ACTIVITY

● 91 deals closed in 2017 vs 79 in 2016, strong start in 2018

● Healthy food preferences continue to drive investment in agriculture infrastructure

● Public company valuation multiples continue upward

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SPOTLIGHTMARKET TRENDS

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VALUATION TRENDS

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May-15 7.1 10.3 7.9 11.5Jun-15 7.8 9.7 7.8 11.5Jul-15 7.7 9.0 7.6 11.6Aug-15 7.3 8.7 7.5 10.6Sep-15 7.1 8.8 9.9 11.4Oct-15 7.0 9.3 10.8 11.4Nov-15 7.1 9.0 10.4 11.7Dec-15 7.3 11.7 11.4 12.1Jan-16 7.2 12.7 11.0 11.8Feb-16 7.1 13.1 10.7 12.3Mar-16 7.4 10.8 11.2 15.5Apr-16 7.2 10.6 11.0 15.1May-16 7.5 11.2 11.3 14.5Jun-16 7.0 11.2 11.3 11.0Jul-16 7.1 11.3 11.4 13.3Aug-16 7.3 10.6 11.7 14.2Sep-16 7.4 9.7 11.7 12.8Oct-16 7.2 10.6 11.8 13.5Nov-16 6.9 10.3 11.4 13.3Dec-16 7.4 9.1 13.3 12.1Jan-17 7.7 9.3 11.8 13.4Feb-17 7.4 9.4 12.2 13.7Mar-17 8.2 7.3 10.3 12.0Apr-17 8.8 7.5 10.0 13.4May-17 9.9 8.0 11.0 12.6Jun-17 10.5 10.5 11.0 12.3Jul-17 11.0 10.8 11.3 13.1Aug-17 11.2 10.9 11.3 13.4Sep-17 12.0 9.8 11.1 13.6Oct-17 12.0 9.6 11.6 16.5Nov-17 11.5 8.7 12.1 15.1Dec-17 11.5 9.6 10.8 14.4Jan-18 11.9 9.8 11.4 14.5Feb-18 10.9 10.4 11.4 16.8Mar-18 11.4 11.3 12.0 17.1Apr-18 11.6 11.8 11.8 16.2

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Water. seeds. fertilizer. and inputs

Animal and crop production

Processing. storage. distribution and other

Equipment and services

acquires

to partner with Fresh Innovations’ management team to expand the business

CONTINUED GLOBAL GROWTH AND M&A ACTIVITY

Doug Kravet, Oaklins' organic and sustainable agriculture specialist, is pleased to share some high-level industry intelligence in this edition of Spot On.

“Organic and sustainable agriculture continues to outperform the overall agriculture industry. Driven by changes in consumer preferences, an entirely new agriculture supply chain is emerging.

As conventional farmland moves toward farmland that is certified to cultivate organic crops or developing

cross-border distribution channels, opportunities abound. Yet, there are risks. The market has increased six-fold in the past two decades, however now it is showing early signs of slowing growth rates. As the industry continues to mature, the participants are becoming larger, more sophisticated and vertically integrated.

As a result, we expect to see increased levels of M&A activity in the near-term.”

2Spot On · Organic & Sustainable Agriculture · July 2018

Market trends

* These transactions were screened to include firms that owned farmland, produced agricultural inputs, grew crops, processed, stored and distributed commodities that were organic, non-GMO or grown using sustainable agriculture practices. Firms that manufactured equipment or provided services to better utilize soil or water in agriculture were also included in the universe of transactions.

As companies across the food and agricultural supply chain shift their focus to increasing organic and sustainable capacity, a strong M&A market has developed. Between 2014 and March 2018, a total of 372 transactions were located.* The large majority of these deals were completed by corporations seeking to expand their operations, capabilities or geographic coverage. Private equity groups and other institutional investors are aggressively pursuing transactions in certain markets. During the three months ending in March 2018, institutional investors represented <10% of the deals completed.

Of the 32 deals closed in the first three months of 2018, 37.5% were cross-border. The geographic areas that were most active included North America, Europe, and Australia. The largest volume of M&A deals were completed in the US, nine during the first three months of 2018.

Particularly active market segments include “smart” equipment, such as drip-irrigation or nutrition management systems. Land, inputs, crop and animal production companies are still the fundamental drivers of this industry.

M&A market continues to be strong with no immediate signs of slowing down

0

20

40

60

80

100

2014 2015 2016 2017 Q1 2018

11

19

1918

20

14101111

Land, water and primary inputs

Animal and crop production Processing, storage, distribution and other


0

20

40

60

80

100

2014 2015 2016 9M 2017

19292829

16191820

26212528


Animal and crop production Processing, storage, distribution and other


8101111

91

32

798388

5

7

2928

29

24

9

34

212528

M&A deals from 2014 to Q1 2018

Source: Oaklins elaboration on S&P Capital IQ and PitchBook data


Market trends

Strong demand for organic food, drink and other products by consumers has caused broad-based growth in organic farmland globally. Overall, organic farmland has increased at an average annual rate of 7% during the past ten years. Europe has the largest number of hectares of both arable and permanent crops. Australia/Oceania has the largest amount of permanent grassland.

To keep pace with consumer demand, the number of hectares of cereals planted increased from 1.88 million hectares in 2007 to 4.09 million hectares in 2016.

Similarly, plantings of grapes and tropical/sub-tropical fruit have each increased by more than three-fold during this period.

Farmers that seek to convert their conventional farmland to organic farmland undergo a three-year conversion process. Worldwide, there are 1.7 million hectares of farmland that are in the transformation process. During this process, farmers face challenges such as more complex crop rotations, different crop nutrition programs and pesticides, reduced cash flow during the transition period and issues with short-term price fluctuations.

The expansion of organic farmland continues in response to double-digit growth in retail sales of organic food and drink

Arable crops (such as cereals, vegetables)

Permanent crops (such as berries, citrus fruits, grapes, coffee, olives)

Permanent grassland

OtherSource: FiBL & IFOAM – Organics International (2018):

The World of Organic Agriculture. Frick and Bonn

North America

Africa Oceania

Europe

Latin America

Asia

3.1 million Hectares 5.8%

10 Yr CAGR

13.1 million Hectares

6.5%

10 Yr CAGR

4.9 million Hectares

5.0%

10 Yr CAGR

7.1 million Hectares 3.7% 10 Yr CAGR

1.8 million

10.2% 10 Yr CAGR

27.3 million Hectares Hectares 10.2% 10 Yr CAGR

38%

46%3%

13%43%

41%

11%

5%49%

1%

16%

34%

7%

62%

14%17% 29%

11%

58%

2%1%3%

96%

Arable cropsPermanent grassland Permanent crops Other

Organic farmland by geographic area and use


Market trends

The organic food industry has realized explosive growth over the past two decades, increasing sales from US$15 billion to approximately US$90 billion. While growth is expected to continue, demand is concentrated in North America and Europe.

The distance between where organic crops are grown and where they are consumed creates the need for complex cross-border supply chains (see below for import trade flows into the US). To a large degree, the long-term durability of growth rates in retail organic sales will be dependent on these supply chains as well as on the development of markets in other regions, such as Asia. Issues concerning the certification, identity preservation and verification of organic commodities are also critical to the industry. Retail channels are becoming much more sophisticated and are demanding visibility into the supply chains of their vendors. As a result, a higher level of scrutiny is being applied to the grower and distributor than had been in the past. Many firms are creating much stricter standards or vertically integrating to make sure they control their supply chain.

Organic Commodity Statistics United States Imports: US$7.1 billionUnited States Exports: US$3.0 billion

Challenges and opportunities: the availability of organic farmland and scaling global supply chains

Doug Kravet, Organic & Sustainable Agriculture Specialist

“We expect to see an increase in the volume of M&A transactions in the next 12 months. The market continues to be fragmented, with regional firms covering specific geographic areas. The forecast is for heightened M&A activity as middle market firms and multinationals make investments to build their farming acreage, growing capabilities and supply chains. Institutional investors are also seeking high-quality assets.”

4

Source: Imports from top 10 countries of origin for 2013-2016 are presented above. All data in this figure are derived from US Organic Trade Data: 2011 to 2016,” published by Organic Trade Association, The Ohio State University, and PennState.

US$ 710m

US$ 710m

US$ 557m

US$ 345m

US$ 340m

US$ 336m

US$ 307m

US$ 352m

US$ 331m

Mexico

Peru

Italy

Brazil

India

Colombia

Spain

Canada

Argentina

Turkey US$ 300m

Spot On · Organic & Sustainable Agriculture · July 2018


The Wonderful Company is committed to offering high-quality, healthy brands and helping consumers make better choices

The Wonderful Company grows, harvests, packages and markets a diverse range of healthy products, including fruits, nuts, flowers, water, wines and juices.

The company’s diverse holdings make it the world’s largest grower of nuts and the largest citrus fruit grower in the US. The business was founded in 1979 by Stuart and Lynda Resnick. It is headquartered in California and generates US$4 billion in revenues. It is

privately held and focuses on acquiring and developing fresh food and flower brands.

The Wonderful Company has a strong commitment to sustainability. It directs significant resources towards research and technology to improve product quality while minimizing environmental impact. To date, the company has invested more than US$120 million to protect natural resources.

The Wonderful Company’s brands

FIJI Water JUSTIN Wines

Wonderful Almonds

Landmark Wines

Wonderful Halos

POM Wonderful

Wonderful Pistachios

Teleflora

Wonderful Sweet Scarletts

Spotlight

Date Brand Key event

2015 The Wonderful Company launches

2014 Wonderful Sweet Scarletts is launched

2013 Wonderful Halos is launched

2011Paramount Farms begins selling almonds under the Wonderful brand

Date Brand Key event

2011 Landmark Vineyards become part of FIJI Water

2010 JUSTIN Vineyards becomes part of FIJI Water

2009 Get Crackin! marketing campaign for pistachios launches

2008FIJI outsells Evian to become the leading premium bottled water in the US

A chronology of key events

Source: http://www.wonderful.com/who-we-are


The Wonderful Company’s strategy is to invest in brands that help consumers make healthier choices. To achieve this strategy, the company invests heavily in agribusiness assets and marketing/brand development. As the company’s Vice President of Marketing, Adam Cooper, said in a recent interview, “Because we control the land and oversee the entire process – from planting to picking, from tree to shelf – we provide consumers with consistent, fresh and ‘wonderful’ fruits and nuts under our iconic brand names”.* The “tree to table” branding used for the company’s Pom Wonderful brand is a good example of this strategy.

The Wonderful Company has spent US$100 million over the last decade on consumer insights and research. The investment has been a catalyst for growth. Based on their findings, the company has acquired, created and built recognizable brands that consumers trust. Their strategy focuses on branded products, a market segment which has increased by more than 10%. This contrasts with unbranded produce, which has not shown significant gains.

The Wonderful Company is boosting capacity as consumer demand grows. Wonderful Citrus President David Krause said, “We’ve watched the consumer data, the growth in the category and consumption, and we’ve seen those increasing quite rapidly, so strategically

we’ve been making acquisitions and growing our supply through investments in Mexico and other plantings, heavily in limes”.* The company’s plan of action includes both strategic partnerships and acquisitions across all their brands, as illustrated below.

Strategy

Spotlight

“Tree to Table” Brand

Recent acquistions

2015 2016 2017

● Feb 2015 - Paramount Farming enters beekeeping industry with acquisition of Headwaters farm

● The Wonderful Company acquires Mercier California to form the largest grower of grapevines in the US

● Jan 2016 - Landmark Vineyards and Winery acquires Russian River Valley’s Hop Kiln Winery

● Apr 2016 - Wonderful Citrus makes major acquisitions to extend Persian limes capabilities

● Jan 2017 - Wonderful Citrus acquires DNE World Fruit

● Sep 2017 - Pom Wonderful acquires Ruby Fresh, a major pomegranate company

6

9,000 acres of pomegranate

trees in California Central Valley

Distributed to retail stores and

sold to consumers

Enjoyed by customers!

Fresh pomegranates picked by hand and

transported on a flume of water to

avoid bruising

Pomegranates are whole pressed using

custom-designed, proprietary

extraction equipment

Pom Wonderful

brand developed

and promoted emphasizing the “tree to

table” supply chain

Spot On · Organic & Sustainable Agriculture · July 2018

*Fresh Fruit Portal: https://www.freshfruitportal.com/news/2018/04/16/u-s-wonderful-company-sees-sky-high-growth-as-strategy-pays-off/

https://www.freshfruitportal.com/news/2018/04/16/u-s-wonderful-company-sees-sky-high-growth-as-strat

https://www.freshfruitportal.com/news/2018/04/16/u-s-wonderful-company-sees-sky-high-growth-as-strat


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May-15 7.1 10.3 7.9 11.5Jun-15 7.8 9.7 7.8 11.5Jul-15 7.7 9.0 7.6 11.6Aug-15 7.3 8.7 7.5 10.6Sep-15 7.1 8.8 9.9 11.4Oct-15 7.0 9.3 10.8 11.4Nov-15 7.1 9.0 10.4 11.7Dec-15 7.3 11.7 11.4 12.1Jan-16 7.2 12.7 11.0 11.8Feb-16 7.1 13.1 10.7 12.3Mar-16 7.4 10.8 11.2 15.5Apr-16 7.2 10.6 11.0 15.1May-16 7.5 11.2 11.3 14.5Jun-16 7.0 11.2 11.3 11.0Jul-16 7.1 11.3 11.4 13.3Aug-16 7.3 10.6 11.7 14.2Sep-16 7.4 9.7 11.7 12.8Oct-16 7.2 10.6 11.8 13.5Nov-16 6.9 10.3 11.4 13.3Dec-16 7.4 9.1 13.3 12.1Jan-17 7.7 9.3 11.8 13.4Feb-17 7.4 9.4 12.2 13.7Mar-17 8.2 7.3 10.3 12.0Apr-17 8.8 7.5 10.0 13.4May-17 9.9 8.0 11.0 12.6Jun-17 10.5 10.5 11.0 12.3Jul-17 11.0 10.8 11.3 13.1Aug-17 11.2 10.9 11.3 13.4Sep-17 12.0 9.8 11.1 13.6Oct-17 12.0 9.6 11.6 16.5Nov-17 11.5 8.7 12.1 15.1Dec-17 11.5 9.6 10.8 14.4Jan-18 11.9 9.8 11.4 14.5Feb-18 10.9 10.4 11.4 16.8Mar-18 11.4 11.3 12.0 17.1Apr-18 11.6 11.8 11.8 16.2

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May-15 0,00 0,00 0,00 0,00Jun-15 2,18 -1,06 -3,37 -2,97Jul-15 -1,73 2,32 -6,53 1,18Aug-15 -11,83 -3,70 -13,85 -7,83Sep-15 -19,71 -1,17 -18,62 -11,63Oct-15 -10,29 5,15 -7,43 -5,65Nov-15 -8,55 4,75 -15,77 -3,97Dec-15 -11,54 13,45 -13,51 -5,91Jan-16 -19,48 14,98 -18,73 -12,62Feb-16 -18,66 16,10 -12,88 -7,48Mar-16 -19,58 22,58 -2,17 -0,45Apr-16 -16,74 23,12 4,91 1,49May-16 -22,07 27,55 -3,32 3,18Jun-16 -30,99 25,29 -3,11 6,21Jul-16 -28,43 25,17 -4,56 4,77Aug-16 -24,76 17,21 -3,76 16,96Sep-16 -25,64 29,88 -1,25 16,23Oct-16 -20,72 33,41 0,41 13,91Nov-16 -20,93 30,38 0,84 21,59Dec-16 -16,32 30,36 2,04 22,03Jan-17 -12,61 28,60 11,13 25,29Feb-17 -18,14 28,80 7,78 37,66Mar-17 -14,73 18,31 5,14 45,14Apr-17 -14,67 23,35 5,24 55,87May-17 -10,95 30,03 8,05 55,93Jun-17 -11,29 30,10 4,93 53,28Jul-17 -7,79 36,36 6,14 57,68Aug-17 -6,83 43,65 5,94 53,91Sep-17 -2,62 44,45 2,10 59,06Oct-17 2,12 44,26 8,08 66,90Nov-17 -0,49 32,30 3,68 66,11Dec-17 4,22 30,73 2,60 63,76Jan-18 8,29 33,66 8,64 82,82Feb-18 -0,59 45,90 8,48 78,70Mar-18 0,03 50,98 9,70 80,99Apr-18 0,10 61,31 8,53 76,90

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Water, seeds, fertilizer and inputs


Processing, storage, distribution and other


Between 2015 and 2018, enterprise value to EBITDA multiples for publicly traded companies across the sector have increased. Equipment and service companies trade at the highest EBITDA and multiples have been expanding over the past two years. This trend is consistent with the overall industry trend of firms seeking to better utilize technology and equipment to increase the production yields of farms and make the supply chain more efficient.

Stock prices of publicly traded companies have exhibited more mixed results over the same period. During 2015, the publicly traded stocks declined. Animal and crop protection stocks recovered first, with equipment and services stocks following. Both of these segments showed substantial growth through March 2018. After an initial decline, processing, storage and distribution stocks increased, as did water, seed and fertilizer stocks. Both of these groupings showed minimal net increases between May 2015 and March 2018.

Publicly traded valuation multiples trend upward. Stock returns are mixed

Enterprise value to EBITDA multiples

Stock returns

Valuation trends

Source: Pitchbook


Selected players

Land companies Country Market cap (US$m) EV/Rev EV/EBITDA

Farmland Partners USA 401 21.6x 30.7x

GladStone Land USA 178 16.6x 26.6x

Rural Funds Group Australia 411 14.7x 14.8x

Average 17.6x 24.1x

Median 16.6x 26.6x

Seed, fertilizer and crop protection companies Country Market cap (US$m) EV/Rev EV/EBITDA

S&W Seed USA 86 1.6x 34.9x

Vilmorin & Cie France 1,480 2.0x 9.0x

Sakata Seed Japan 1,657 2.7x 22.4x

Yara International Norway 11,618 1.3x 11.0x

ForFarmers The Netherlands 1,408 0.5x 11.6x

Average 1.6x 17.8x

Median 1.6x 11.6x


Processing, storage and distribution companies

(1) Since REITs trade at significantly different multiples than the primary input companies, they were separated in the tables above.

(2) The extremely large seed companies such as Monsanto, Syngenta and Pioneer/DuPont were not included in this analysis.

This category includes firms that own farmland and water rights, seed companies, and producers of fertilizers and pesticides. Primary input companies

include firms that promote soil fertility and biodiversity and do not use agricultural practices that degrade water or other natural resources.

This category includes all the functions required to store, handle, process and transport the commodities

from growers to food companies, retailers, food processors and other types of customers.

Company Country Market cap (US$m) EV/Rev EV/EBITDA

Olam International Singapore 5,482 0.7x 11.8x

Wilmar International Singapore 15,574 0.8x 14.0x

The Andersons USA 924 0.5x 19.9x

GrainCorp Australia 1,541 0.8x 12.6x

Greenyard Belgium 939 0.3x 10.7x

Total Produce Ireland 1,110 0.3x 10.6x

Kernel Holding Ukraine 1,096 0.8x 9.2x

Average 0.6x 12.7x

Median 0.7x 11.8x

EV/Rev: Enterprise Value to Revenues multiple EV/EBITDA: Enterprise Value to EBITDA multipleValues are in US$m — as of 31 May 2018Sources: Capital IQ, PitchBook


Animal and crop production companies

Selected players


China Shengmu Organic Milk China 745 3.3x NM

Camellia UK 477 1.1x 7.8x

Marine Harvest Norway 10,739 2.8x 12.3x

Kuala Lumpur Kepong Malaysia 6,920 1.7x 24.3x

Bakkafrost Faroe Islands 2,812 4.8x 16.8x

Adecoagro Brazil 901 1.7x 11.3x

BrasilAgro Brazil 207 2.5x 4.9x

Nippon Suisan Japan 1,697 0.6x 12.9x

Average 2.3x 12.9x

Median 2.1x 11.8x

EV/Rev: Enterprise Value to Revenues multiple EV/EBITDA: Enterprise Value to EBITDA multipleValues are in US$m — as of 31 May 2018Sources: Capital IQ, PitchBook

Equipment and services companies

Many companies in this category are considered “AgTech” firms and include soil, bio-analytical, GMO and other types of testing laboratories, greenhouse and

hydroponic farming equipment firms, smart irrigation and water management systems, and precision agriculture firms.


Origin Enterprises Ireland 818 0.6x 11.1x

Idexx Laboratories USA 16,894 8.7x 34.3x

Jain Irrigation Systems India 890 1.2x 8.5x

Lindsay USA 945 1.8x 16.7x

Dayu Water-Saving Group Company China 857 4.3x 38.1x

Bucher Industries Switzerland 3,748 1.3x 11.0x

Neogen USA 3,515 8.5x 37.9x

Fortive USA 24,507 4.0x 17.1x

Trimble USA 8,605 3.4x 19.7x

First Sensor Germany 291 1.9x 1415.7x

AgJunction USA 82 1.5x NM

Mexichem Mexico 6,572 1.7x 12.9x

Average 3.2x 20.3x

Median 1.9x 16.2x

This broad category includes growers that focus on fresh fruit, fresh vegetables and other commodities such as corn, wheat, barley, peas, lentils, soybeans, potatoes, green beans and legumes. Other crops

include sunflower, olive, palm, sesame, canola, oilseed crops, nuts and mushrooms. Livestock and seafood are also included in this category.


Selected private transactions

Date TargetAcquiror/Investor Category Rationale Country Valuation

EV (US$m)

EV/Sales

EV/EBITDA

May-18Organic

crop production

Midsona takes another step in its trek to become

Europe's organic crop leader

N/A N/A N/A

May-18Sustainable

animal production

The acquisition will give Bakkafrost a link to the

mid-Atlantic area of the USN/A N/A N/A

May-18

Sustainable processing,

storage, distribution and other

Scales Corp. is shifting its focus away from cold storage while Emergent Cold continues to grow

151.4 N/A N/A

April-18 Land, water and primary inputs

Partnership allows Anuvia to expand while Smithfield can convert hog waste into

sustainable fertilizer

N/A N/A N/A

April-18Sustainable

animal production

CPF strengthens its competitiveness in the

shrimp industryN/A N/A N/A

April-18



Arable's commitment to growth made an attractive

partnership for both parties

17.5 N/A N/A

April-18Sustainable

animal production

Land O'Frost continues its expansion as one of the

fastest growing companies in deli meat/specialty

sausage industry

N/A N/A N/A

April-18



Olam increases presence into the Spanish and Portuguese markets

N/A N/A N/A

March-18 Land, water and primary inputs

Refinement of Cargill's growth strategy.

Meanwhile, La Coop fédérée continues to

expand

1,165.78 N/A 13.3x

March-18Sustainable

crop production

The acquisition places the Buderim Group as the largest marketer of

macadamia nuts in the US

N/A N/A N/A

Feb-18 Land, water and primary inputs

ForFarmers adds its fifth country of operation and

takes another step in strengthening its position as Europe's leading feed

provider

N/A N/A N/A

M&A activity


Selected private transactions (continued)

Date TargetAcquiror/Investor Category Rationale Country Valuation

EV (US$m)

EV/Sales

EV/EBITDA

Feb-18 Land, water and primary inputs

Neovia aims to strengthen the positions of its premix

business lines.N/A N/A N/A

Feb-18Sustainable

crop production

The acquisition will complement Bonduelle's already well-established

canned and frozen vegetables operations.

N/A N/A N/A

Feb-18Organic

crop production

Nestlé widens its presence in the fast-growing organic crop production industry

in Latin America.

N/A N/A N/A

Jan-18 Equipment and services

The investment allows Cainthus to expand imaging technology to pork, poultry, and

aquaculture.

N/A N/A N/A

Jan-18Sustainable

crop production

Welamoor and Limones Piuranos complement their

existing importing and production operations with the acquisition of a leading

avocado and mango producer.

600 N/A N/A

Jan-18

Companhia Agricola do

Parecis (Ciapar)

Sustainable crop

production

Amaggi looks to solidify its position as one of

the worlds largest soy exporters and one of Brazil's largest grain

producers.

N/A N/A N/A

Dec-17



Cerea Partenaire aligns themselves with a booming

French organic industry, experiencing over 20% growth in the last year.

N/A N/A N/A

Dec-17Sustainable

animal production

The acquisition expands Marine Harvest's

operations into North America.

N/A N/A N/A

Dec-17



SuperDrop can increase production capacity

with the acquisition of a processing plant and

hatchery.

N/A N/A N/A

Nov-17 Equipment and services

Yara International pairs its fertilizer production with software for field

management.

N/A N/A N/A

Nov-17



The deal will allow Nestle to continue its growth and

reaffirms their position in the premium coffee

market.

N/A N/A N/A

Oct-17 Equipment and services

The acquisition is part of EFC Systems plan to form a new agronomic planning and sustainability division.

N/A N/A N/A

M&A activity


M&A activity

12

Selected Oaklins transactions

The private shareholders of Agro100 have sold the majority stake in the company to Aqua Capital for US$70 million.

Agro100 produces and distributes agricultural products and provides related technical assistance. The company was founded in 1996 and is headquartered in Londrina, Brazil.

Aqua Capital is a private equity and venture capital firm specializing in middle market, growth capital, mid venture, and late venture investments. The firm seeks to invest in typically family-owned medium-sized companies in sectors such as agribusiness, food and services, and logistics, both industrial and services, but it does not seek to invest in farmland. It prefers to invest in South America, with a particular focus on Brazil, Argentina, Paraguay, Uruguay, Colombia, and Chile. Aqua Capital seeks to invest in companies with revenue between US$15-150 million. It typically exits its investments after five to six years through a trade sale. Aqua Capital was founded in 2009 and is based in São Paulo, Brazil, with an additional office in Ciudad Autónoma de Buenos Aires, Argentina.

Oaklins’ team in Brazil advised the seller in this transaction.

Case study



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