By Gerelyn Terzo, Global AgInvesting Media
Beijing’s Sylvan Holdings, a biotech company specializing in mushroom spawn, has received a ringing endorsement from the private equity space. The firm has received a capital injection from Novo Holdings, a life sciences investor, while private equity giant KKR will maintain its position as the company’s largest backer. Sylvan has been around for over a century and was acquired by KKR portfolio company Jiangsu Yuguan Modern Agricultural Science & Technology several years ago.
As part of the agreement, Novo is making a direct investment into Sylvan, the size of which the companies are holding close to the vest. They did share that the deal marks Novo’s biggest planetary health investment in Asia and its maiden investment into the fungal biotech sector. Novo considers these markets “strategic priorities” given their growth potential and influential role in planetary health.
Sylvan plans to direct the proceeds toward an expansion push, bolstering capacity, improving its R&D infrastructure and entering high-growth markets in Asia. Novo will lend its extensive network and sector expertise to the deal to further solidify Sylvan’s mushroom spawn market as well as support the development of new bio-products including fungi-based materials, biopesticides and nutritional supplements.
The modern mushroom industry is emerging as a sustainable powerhouse, offering significant environmental advantages and contributing to a circular economy. Requiring far less land and water than conventional farming, mushroom cultivation also cleverly repurposes agricultural waste into valuable protein sources. Sylvan, a key player in the sector, sees substantial growth potential in China, where a rapid industrialization of mushroom farming is fueling demand for their mushroom spawn. This expansion is not only driving agricultural modernization but also bolstering rural economic development across the nation.
Sylvan CEO Jackie Qi said, “Sylvan is delighted to welcome Novo Holdings as our latest investor and to have the continued support of KKR, who have been a terrific strategic partner in our value creation journey. With this latest milestone, we are in an excellent position to pursue our ambition to become a global leader in fungal biotechnology solutions across four unique markets: Food, Health, Agriculture, and Materials, and will look to leverage their global networks and expertise to take Sylvan to the next level of transformation.”
Novo Holdings issued a joint statement saying, “Sylvan represents a significant milestone for our global Planetary Health strategy and underscores our growing presence in Asia. As a leader in fungal biotechnology, Sylvan is well-positioned to deliver sustainable innovations that support food security, reduce chemical use, and build a circular bioeconomy. We look forward to collaborating with KKR to help Sylvan scale its impact, particularly across dynamic markets in Asia, and advance our shared vision for a healthier and more sustainable planet.”
KKR Head of China Private Equity Chris Sun, Partner said, “We are pleased to welcome Novo Holdings given their significant expertise in life sciences and planetary health. KKR is aligned with Novo Holdings in our commitment to drive the creation of sustainable global solutions. We are proud of the tremendous progress Sylvan has achieved and believe this new strategic partnership will enable it to unlock even greater growth.”
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