January 5, 2021

By Lynda Kiernan, Global AgInvesting Media

French independent ag and food investor Unigrains has made an undisclosed investment in Innatis, France’s second largest name in the apple industry, with the goal of partnering with the company to achieve its strategic growth objectives, including the acquisition of major French fruit producer Domaine des Coteaux.

“With Unigrains, Innatis has found an ideal partner to carry out its growth projects,” said Marc Rauffet, president, Innatis. “This ambition is perfectly illustrated by the acquisition of Domaine des Coteaux, where our pioneering spirit, our expert know-how and the particular attention we pay to Nature bring us together and make this collaboration particularly meaningful.”

Founded over 55 years ago and headquartered in Paris, Unigrains manages approximately $1 billion euros and has partnered with nearly 100 companies at various stages of their development through equity and quasi-equity financial solutions, minority stakes, capital restructuring, strategic investments, and acquisitions.

Recently, in November 2020, the investor announced that it had secured EUR250 million (US$296 million) in revolving credit facility (RCF) financing from a collective group of banks, co-led by Crédit Agricole Ile-de-France which acted as agent and coordinator with Société Générale, Caisse d’Epargne Ile-de-France, La Banque Postale, LCL, and Arkéa.

At the time, Jean-François Laurain, CEO of Unigrains, stated that the company intended to “step-up” its activity as a long-term investor in agriculture and food companies, saying, “This financing facility will enable us, along with co-investment instruments for third-party investors under management, to support the best projects of all sizes in the food industry in France and abroad. We can thus continue to increase our investment pace at a time when it’s particularly needed by well-managed companies.”

Now, less than two months later, Unigrains is partnering with Innatis. Founded in the 1950s in the region of Angers, Innatis is a national leader in the production, packaging, and marketing of apples. The company owns orchards, packaging facilities, and Innafruits – a producers’ organization – as well as six subsidiaries. While maintaining a strong core business, Innatis has diversified into fruit trading, moving 130,000 tons of apples, pears, summer fruits, oranges, kiwis, and others within France and abroad per year. And with commercial operations in more than 55 countries, has annual sales approximating EUR 130 million (US$160 million).

“We are delighted to support Innatis, a French leader in apples,” said Bruno Julla, investment director, Unigrains. “The Group stands apart thanks to its solid, resilient and innovative model which brings together agile and reactive SMEs. Beyond financial support, Unigrains will mobilize its expertise as a specialized agri-food investor to accompany Innatis in its analysis of the sector and of growth opportunities.”

Through this investment, Innatis gains a partner that can support the company in its goal of realizing its new growth projects that include the construction of a more modern and efficient fruit station near Ecouflant that would raise productivity, and most notably, the acquisition of Domaine des Coteaux.

Founded in 1989, Domaine des Coteaux is a key producer of French peaches, nectarines, apricots, cherries, and kiwis. With sales volumes of nearly 13,000 tons per year, the acquisition will foster a diversification into stone summer fruits for Innatis, and opens the possibility for various new commercial and industrial collaborations.

“I am delighted to team up with Innatis,” said Domaine des Coteaux CEO Nathalie Bonnet, who will continue in her role leading the company and will join the Innatis Strategic Board. “We share the same values and make it a priority to produce healthy, quality fruits while being attentive to the environment. Renewal is at the heart of our common approach and this collaboration will enable us to join forces in modernizing and perpetuating our crops.”

– 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.