July 2, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

IDeA Agro, managed by DeA Capital Alternative Funds SGR and the first private equity fund in Italy to focus on agribusiness and farmland, has completed its investment cycle with its tenth investment – the acquisition of a majority stake in S.P.O. Zentrum, the Sicily-based leading platform in Italy for the production, packaging, and distribution of fresh fruits and vegetables with a concentration on citrus fruits. 

The framework of this deal entails IDeA Agro’s direct investment in Agrimediterranea, the agricultural holding company that controls the farming operations and the S.P.O. Zentrum distribution platform with the goal of advancing its development with the implementation of sustainable and innovative agricultural concepts. 

“IDeA Agro’s agricultural investment portfolio is to-date unique in the European landscape both in terms of crop and geographical diversification within Italy,” said Pier Luigi Rossi, managing director, IDeA Agro Fund. 

“Therefore, in our search for agriculture excellence we could not miss our presence in the citrus fruit chain, which embodies the taste and tradition of Sicily, and we believe that the SPO Zentrum is the ideal platform to build a national market leader.” 

Managing approximately 450 hectares in Sicily, of which 180 hectares are directly managed, the group has achieved annual production of 25,000 tons with consolidated sales to-date of more than €20 million (US$21.5 million) and an average annual growth rate of approximately 10 percent over the past five years.

Being known for its vertically integrated business model covering the entire food chain from the production of raw materials to processing and marketing of finished products, the group’s products are processed through a logistics platform consisting of pre-calibration warehouses in Sicily and processing and distribution centers in central Italy capable of ensuring same-day delivery throughout the country. 

From an ESG perspective, IDeA Agro explained that this deal not only promotes environmental sustainability through innovative growing practices, but also supports social development in Sicily. 

The adoption of strict ESG criteria will foster the growth of local communities and related businesses while ensuring the continuous improvement of working conditions. The focus on traceability and product quality also will strengthen consumer confidence and enhance the excellence of Sicilian fruit and vegetables on the national market.

This integrated approach is a study in how sustainable investments can create shared value by combining economic performance with environmental and social benefits. 

“We are proud to collaborate with IDeA Agro,” said Giacomo Rizzo, CEO, SPO Zentrum Group. “I see this as a very promising partnership that will enable us to achieve leadership in the sector, with investments aimed at vastly expanding our production farms to create Italy’s largest integrated production and marketing platform.”

“We have always believed in an ‘AgriCultural’ system that encompasses not just the mere cultivation of the soil, but above all a service model focused on fully maximizing the value of our product. We are currently the only Sicilian production company, also IGP certified, with packaging and distribution facilities in central Italy, capable of delivering goods to the main commercial areas within a few hours.”

Moving forward, IDeA Agro plans to not only further professionalize and enhance the global agricultural supply chain, but also position the group as the leading integrated player in Sicily for the production and distribution of fresh fruit and vegetables through a significant investment program aimed at expanding the existing farm operations and reinforcing the logistics and commercial platform throughout the country. 

“I am delighted and enthusiastic to announce this new investment, which sees us working with the Rizzo family to develop the Sicilian citrus fruit chain,” said Rossi. “With this latest operation, the IdeA Agro Fund completes its investment cycle with 10 active deals, seven of which in agricultural greenfield space for over 1,200 hectares, confirming its position as the leading private equity fund specialized in agribusiness in Italy with an investment strategy focused on permanent crops, the most complex but also the most profitable, and on the construction of short and vertically integrated agricultural and agro-industrial supply chains.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

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