January 28, 2021

By Lynda Kiernan, Global AgInvesting Media

Boston-based Hancock Natural Resource Group (HNRG) announced the acquisition of a majority stake in David Del Curto S.A. (DDC) – a leading Chilean fruit production, packing, and exporting company, on behalf of third party clients, for an undisclosed amount. 

The stake was acquired from The Corso Group (TCG), the investment unit of the Cores Solari family office, which acquired an ownership stake in the company in 2005. Under the terms of the HNRG deal, TCG will maintain a minority stake in the company where its experience with Chile’s agricultural cycle and DDC operations will prove beneficial in the future.

As a company of Manulife Investment Management, this deal carried out by HNRG aligns with Manulife’s target of achieving the strategic growth of its private markets offerings of agriculture, timber, real estate, infrastructure, private equity and credit.

“David Del Curto is a well-respected firm with more than 65 years of success in fruit production and extensive sales relationships throughout Asia, Europe, North America and the Middle East,” said Stephen J. Blewitt, global head of private markets, Manulife Investment Management. “The acquisition strengthens and diversifies our existing portfolio as DDC is in a solid position; both currently with market-leading characteristics and for the future with state-of-the-art farmland facilities and opportunity for additional strategic growth.”

It also works to diversify HNRG’s agricultural portfolio as a Farmland Plus asset through its Farmland Plus initiative – assets that include integrated crop operations with transitional processing, storing, and packaging for wholesale distribution.

Oliver S. Williams, CFA, global head of agricultural investments, HNRG noted, “The acquisition of DDC opens a new market for our agricultural clients. Both the company’s track record and Chile’s reputation in the global agricultural markets make this an attractive agricultural investment.”

DDC grows more than 10 different types of fruit across 11 farms, and also manages one of the largest nurseries in the country, as well as three packing facilities with a capacity of 9 million boxes of fruit.

Although this is a first step into Chile’s ag sector for HNRG, it’s not the first group’s first deal in the country – having acquired 62,000 hectares of timberland from domestic timber company MASISA in 2014, and another 12,500 hectares of Chilean timberland from Japan’s Mitsubishi in 2018.

Despite possible instability on-the-ground, the move into Chile’s ag sector has great potential to be strategically savvy. The country’s climate is suitable for the production of high value crops, and its geographic location in the Southern Hemisphere gives production there an anti-cyclical advantage to Northern Hemisphere harvests.

These advantages were also weighed by Dole, which in 2016 acquired TucFrut Farms (consisting of five farms spanning 1,000 hectares (2,400 acres) and packing facilities in Molina and Linares, Chile, for an undisclosed sum. The deal also gained Dole 340 hectares, (841 acres) of farmland that was ready to be developed for production.

DDC currently packs and markets fruit for approximately 90 third-party growers along with the fruit grown on its own farms, accounting for about 1.7 percent of the fruit volume of the country. It sells products to a diverse, global customer base that numbered nearly 150 customers across four continents in 2018/19, with 90 percent of its sales destined for Europe, North America, and Asia.

Also continuing in their role with DDC is Fernando Cisternas, the company’s current CEO, along with the management team, who will remain in charge of the day-to-day business and direct strategic growth projects.

“We are very excited to work on the ownership transition with the strong DDC management team that is already in place and value The Corso Group’s continuing partnership,” said William E. Peressini, CEO, HNRG. “We will also work closely with the existing teams on land stewardship which we anticipate will include redeveloping existing orchards and developing those orchards that have not been under cultivation. Through these efforts we will look to expand DDC’s production, as well as enhance existing and new marketing partnerships, to create additional opportunity.”

– 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, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.