April 5, 2021

By Lynda Kiernan, Global AgInvesting Media

International private equity group Bridgepoint has agreed to acquire Sun World, a global leader in fruit genetics, research and development, and licensing. 

This deal follows a transformative period of ownership by Renewable Resources Group and Vision Ridge Partners during which Sun World divested its substantial farming, packing, and marketing operation to focus fully on its breeding and licensing business.

Through this investment, Bridgepoint will now be the controlling shareholder in Sun World which plans to use the capital gained to support its growth trajectory by building out a broad genetics and technology platform for specialty fruit growers. 

“In partnering with Sun World, our ambition is for it to become a broader based platform investment in fruit genetics with a considerable runway for long term growth,” said Andrew Sweet, partner and head of investment activities for North America with Bridgepoint.

“Sun World was part of the first wave of genetic innovation for produce, establishing a recurring royalty business model that has enabled it to prioritize its R&D innovation,” continued Sweet.

“Today it enjoys a market-leading reputation with the largest growers, distribution partners and retailers globally thanks to its cutting-edge molecular techniques, and breeding processes. We expect to continue to invest in new technologies that benefit growers and consumers alike.”

Sun World’s core business is to develop new fruit varieties able to be grown in a sustainable way offering high yields, optimum flavor, and appearance. To fuel this work being accomplished by its teams of plant breeders, researchers, agronomists, and technicians, Sun World opened a Center for Innovation near Bakersfield, California, last year featuring a 17,000-square-foot building including specialized facilities for tissue culture and molecular breeding, and a 160-acre experimental research farm.

In addition to enhancing its IP portfolio and core grape and stone fruit breeding operation, Sun World has expanded its focus to include a number of underserved crops and technology solutions that offer a strong global appeal. On its website, Sun World notes that it has identified agtech as an important strategic focus for the coming years, and is carefully reviewing early-stage process automation, robotics, AI, and integrated software solutions for crop management to determine where lies the greatest promise.

Currently, the company holds more than 300 plant patents, and views its Center for Innovation as giving it a key advantage in advancing their pipeline of fruit genetics. This anticipated growth will be both organic and through investment in and the acquisition of new genetics and emerging technologies.

“Our connection with the Bridgepoint team was undeniable from the first conversation,” said CEO David Marguleas, who will serve on Sun World’s new board and hold an equity position in the company. “They understand and appreciate the extraordinary head start we enjoy in the sector after 30 years of breeding superior produce. And they share our vision of the many ways we can grow. To say we’re ‘excited’ undersells what this new partnership means for Sun World.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com.