January 20, 2021

By Lynda Kiernan, Global AgInvesting Media

Ahern Agribusiness, a key vegetable seed distributor across Mexico and Central America, has been acquired by an Israeli investment group consisting of private equity fund Tene Investment Funds and agribusiness investor Pulse Agri Investments. 

Tene Investment Funds is an Israeli private equity fund managing more than $1 billion in assets with existing investments in Netafim, a global drip irrigation leader; SCR, a dairy products leader; Gadot Agro, a leading Israeli company engaged in the sale and distribution of seeds, pesticides, and international agricultural projects.

Pulse Agri Investments focuses on investment opportunities in the agribusiness space focusing on maximizing impact by investing in ag globally as platforms that offer novel channels to the market along with complimentary early-stage companies.

Founded in 1981 in San Diego, California, Ahern is a leader in its industry. Focusing on the Mexican and Central American markets, Ahern evaluates and markets vegetable seed varieties from suppliers including Bayer, BHN, Enza Zaden, Limagrain Group, Syngenta, Top Seeds, and Vitalis Organic Seeds using expertise in plant genetics and crop management to assess seeds for plant size, uniformity, cover, vigor, maturity, fruit size, shape, color, texture, disease resistance, soil profiles, and more to offer the best seed for each customers’ application.

The company also provides variety-specific crop advice, customer support, and logistical and post-sale support.

“We are excited to have found a buyer who shares our vision and who will enable us to take the company to the next level,” said Kevin Ahern, CEO, Ahern Agribusiness.“Over the past four decades, we’ve built Ahern into a successful, innovative and financially robust business and with the new partners on board, we can realize our ambitious plans for the future.”

When speaking of bringing the company to the next level, Ahern has specific goals in mind centered on:

~ expanding research into cutting-edge biological inputs for improved plant health and productivity while reducing the environmental footprint of agricultural production. 

~ increasing access to AI-driven technologies

~ delivering high-performance seed varieties developed from the best genetics and the best research and service for both customers and suppliers.

While it strives toward these goals, Kevin Ahern and the existing management team will continue in their roles  to preserve operational continuity, and Ahern will join the company’s executive board of directors.

In addition, five new members from the new ownership partners will join the Ahern board including Roee Tamari as executive chairman, Amnon Eshet as strategic business development lead, and three members from Tene Investment Funds: Dr. Ariel Halperin as non-executive chairman of the board, along with Ran Ben-Or, and Eyal Shamear.

“We were impressed by Ahern’s outstanding operation, and the highly professional and dedicated team,” said Roee Tamari, managing partner, Pulse Agri Investments and new executive chairman of the board, Ahern Seeds.

“The infusion of new capital will help us deliver faster on the company’s strategic roadmap. In addition, we plan to bring our experience with agricultural innovation and focus on identifying potential partnerships that can offer value-added benefits to Ahern’s customers.”

It’ll be interesting to see how the recent announcement by the government of Mexico to phase out genetically modified corn for both human consumption and in animal feed, as well as the use of glyphosate by 2024 could effect businesses like Ahern.

The move is being attributed to the country’s efforts to grow self-sufficient in food production as part of the initiative Maíz para México. And although there is a three-year lead time, federal agencies are to immediately halt “purchasing, using, distributing, promoting and importing glyphosate or agrochemicals that contain it as an active ingredient”.

And although groups such as the Mexican Society of Organic Producers is viewing the move as a victory, others such as the National Agricultural Council are pushing back, claiming the ban would put Mexico’s producers at a disadvantage, and damage the agri supply chain.

U.S. corn exports to Mexico in 2019 were valued at US$2.7 billion, according to data from the USDA’s Foreign Agriculture Service, making Mexico the top ranking destination market for the U.S. feed industry.

– 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.