Bahrain-based alternative investment manager, Investcorp, announced it has completed the acquisition of a majority stake in Agromillora Group – a leader in the production and commercialization of permanent crop stock.
Founded in Barcelona in 1986, Agromillora is a top global developer of high-yielding plants and trees, specializing in permanent crops including stone fruits, citrus, nuts, berries, olives trees and grape plants.
In the 1990s and early 2000s, the company was a pioneering force in developing high yielding olive trees designed to thrive in high-density planted orchards and has since been a developer of similar agronomic advancements for almonds, citrus and other permanent crop fruits.
Traditionally, dry-farmed oil olive plantations in the Mediterranean planted trees at a density of between 12 trees per acre to 50 trees per acre. However, in the 1980s researchers and farmers in Spain and Italy developed irrigation systems, specialized varieties, and pruning methods that allowed for planting densities of up to between 150 and 300 trees per acre, according to Paul Vossen, author of History of Olive Orchard Planting Density.
“Demand for Agromillora’s products and high-density plantation models is supported by favorable long-term trends driven by increasing population, GDP per capita and, ultimately, food consumption which in turn requires continuous improvements in agricultural land productivity,” said Mohammed Al-Shroogi, Co-CEO at Investcorp.
Over the course of its existence, the company has expanded its operations across North America, Latin America, Australia, and the Middle East, and has diversified its portfolio of plants through tissue-culture propagation, developing rootstocks for high-density planting scenarios. Today, Agromillora has 11 production facilities in nine countries that supply 300 nurseries and 1,500 growers in more than 25 countries. And in 2016 the company expects to produce and sell more than 65 million plants.
“We believe that Agromillora’s diversified revenue mix across geographies and crops, combined with the company’s track record as an innovator in its industry, ideally positions it to continue its successful expansion into new markets,” noted Shroogi.
This acquisition comes on the end of a very active 12 months for Investcorp’s European Corporate Investment team, who oversaw nine exits including its exit from UK-based Tyrrells Crisps in August for $392 million, and the acquisition of five new portfolio companies, according to Fahad Murad, managing director of Investcorp.
“Agromillora is a very well respected name within the global agriculture industry and has a strong tradition of innovation, which is something that greatly appealed to us when we initially explored this investment opportunity,” said Johannes Glas, Managing Director at Investcorp in Qatar. “There is an excellent management team at the helm and I believe Investcorp will add significant operational expertise when pursuing the growth of the business.”
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Lynda Kiernan